ADNOC Drilling shares rose 30% with the start of trading on the Abu Dhabi Stock Exchange today, Sunday, and opened at 2.99 dirhams per share after two hours of trading, compared to the share price in the initial offering at 2.3 dirhams.
According to Arab Net, the company said in a statement, that the proceeds of the subscription exceeded 4 billion dirhams upon the final settlement of the shares in the subscription process, which makes this subscription the largest listing ever on the Abu Dhabi Securities Exchange so far.
ADNOC Drilling is expected to be among the top 10 companies on the Abu Dhabi Securities Exchange in terms of market capitalization of AED 36.7 billion upon listing
The subscription coverage exceeded the target value, as the demand for the public offering shares amounted to about 127 billion dirhams, or 31 times the target value of the offering.
After the subscription period ended, the first tranche reserved for individual investors in the UAE was allocated by 10%, the second tranche for institutions by 86%, and the third tranche for company employees by 4%.
The Abu Dhabi National Oil Company, ADNOC, which owns the majority of ADNOC Drilling's shares, announced an increase in the number of shares offered in the initial public offering of ADNOC Drilling from 1.2 billion ordinary shares to 1.76 billion ordinary shares, equivalent to 11% of the total capital of ADNOC Drilling, after obtaining the approval of the Securities and Commodities Authority in the country.
After the completion of the IPO, ADNOC will become the majority shareholder in ADNOC Drilling, which amounts to 84%, while Baker Hughes, which entered into a strategic partnership with ADNOC Drilling in October 2018, with its 5% stake in the company.
