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ADNOC Drilling IPO Price Implies Equity Valuation of $10 Billion

A general view of ADNOC headquarters in Abu Dhabi, United Arab Emirates. (Reuters/File)
A general view of ADNOC headquarters in Abu Dhabi, United Arab Emirates. (Reuters/File)
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ADNOC Drilling IPO Price Implies Equity Valuation of $10 Billion

A general view of ADNOC headquarters in Abu Dhabi, United Arab Emirates. (Reuters/File)
A general view of ADNOC headquarters in Abu Dhabi, United Arab Emirates. (Reuters/File)

The Abu Dhabi National Oil Company (ADNOC) announced on Monday that it has set the offer price per share for the initial public offering of its drilling unit at AED2.30, implying an equity value of $10 billion.

The offer price was determined by ADNOC, as the selling shareholder, and ADNOC Drilling, following investor engagement that saw significant strong initial demand indications from both local and international investors, ahead of the start of the subscription period.

ADNOC and ADNOC Drilling believe the offer price per share provides investors with a highly attractive value proposition that reflects ADNOC’s long-term confidence in ADNOC Drilling’s growth trajectory. This decision also reflects ADNOC’s prioritization of a supportive aftermarket performance post-listing.

The decision to set the price per share also reiterates one of ADNOC’s key objectives to further support the growth, strength and diversification of the UAE and Abu Dhabi equity capital markets.

The subscription period opens on Sunday and will close on Sept. 23 for UAE retail investors and on Sept. 26 for qualified domestic and international institutional investors.

ADNOC Drilling is expected to list on the ADX on or around Oct. 3.

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Oil Prices Held Down by Trump Tariff Uncertainty

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown)
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Oil Prices Held Down by Trump Tariff Uncertainty

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown)

Oil prices were little changed on Thursday, maintaining almost all of the previous session's losses on uncertainty over how US President Donald Trump's proposed tariffs and energy policies would affect global economic growth and energy demand.

Brent crude futures were up 18 cents at $79.18 a barrel by 1315 GMT. US West Texas Intermediate crude (WTI) rose 14 cents to $75.58.

"Oil markets have given back some recent gains due to mixed drivers," said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova.

"Key factors include expectations of increased US production under President Trump's pro-drilling policies and easing geopolitical stress in Gaza, lifting fears of further escalation in supply disruption from key producing regions."

The broader economic implications of US tariffs could further dampen global oil demand growth, she added, Reuters reported.

Trump has said he would add new tariffs to his sanctions threat against Russia if the country does not make a deal to end its war in Ukraine.

He also vowed to hit the European Union with tariffs and impose 25% tariffs against Canada and Mexico. On China, Trump said his administration was discussing a 10% punitive duty because fentanyl is being sent from there to the United States.

On Monday he declared a national energy emergency intended to provide him with the authority to reduce environmental restrictions on energy infrastructure and projects and ease permitting for new transmission and pipeline infrastructure.

There will be "more potential downward choppy movement in the oil market in the near term due to the Trump administration's lack of clarity on trade tariffs policy and impending higher oil supplies from the US", OANDA senior market analyst Kelvin Wong said in an email.

On the US oil inventory front, crude stocks rose by 958,000 barrels in the week ended Jan. 17, according to sources citing American Petroleum Institute figures on Wednesday.

Gasoline inventories rose by 3.23 million barrels and distillate stocks climbed by 1.88 million barrels, they said.