The Emirati energy and oil company ADNOC, based in Abu Dhabi, has announced that it intends to list 7.5% of the shares in its group company ADNOC Drilling on the Abu Dhabi Securities Exchange (ADX) taking place in October 2021. It is the largest drilling company in the Middle East with 107 drilling rigs, including 96 own rigs.
ADNOC holds 95% of the shares and can still increase the transaction volume before pricing. The minority shareholder of the remaining 5% shares is the oil service company Baker Hughes.
IPOs for diversification of revenue streams
Already in 2017, ADNOC had listed its subsidiary ADNOC Distribution as a major operator of petrol stations and convenience stores in the United Arab Emirates. In recent years, ADNOC and Saudi Aramco have attracted external investors with IPOs in order to diversify themselves for the future and make themselves less dependent on oil revenues.
US Drilling Service Provider becomes strategic investor
Related to the IPO of ADNOC Drilling is also the announcement of a strategic partnership with Helmerich & Payne. On the one hand, the US drilling service provider sells eight rigs to ADNOC Drilling for USD 86.5 million and, on the other hand, invests USD 100 million in the Emirati drilling company with a lock-up period of three years as part of the IPO. With this step, both sides want to underscore their cooperation.
Sources: https://www.adnoc.ae/en/adnoc-drilling/adnoc-drilling-ipo/ipo-overview
