DUBAI, Sept 13 (Reuters) - State oil giant Abu Dhabi
National Oil Co (ADNOC) has set a price for the initial public
offering of its drilling unit, giving ADNOC Drilling an equity
valuation of $10 billion, it said on Monday.
ADNOC will sell a minimum 7.5% stake in the IPO of ADNOC
Drilling at 2.3 dirhams ($0.6262) per share, raising at least
$750 million in the deal.
The sale is the second public flotation of a company owned
by the Abu Dhabi oil major after the 2017 listing of ADNOC
Distribution, the largest operator of petrol stations
and convenience stores in the United Arab Emirates.
ADNOC will sell a minimum 1.2 billion shares in the IPO,
according to the prospectus, but it reserved the right to
increase the size of the offering at any time before the end of
the subscription period.
The equity valuation is similar to that in 2018 when ADNOC
sold a 5% stake in ADNOC Drilling to Baker Hughes.
The planned IPO is the latest move by Gulf oil giants ADNOC
and Saudi Aramco to raise cash from outside investors as they
try to diversify sources of income in their oil-dependent
economies. Saudi Aramco listed in late 2019, raising
$29.4 billion in the world's biggest IPO.
The offer price was determined by ADNOC and ADNOC Drilling,
following strong initial demand indications from both local and
international investors, ADNOC said.
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 Abu Dhabi
Securities Exchange (ADX) on or around Oct. 3, it said.
($1 = 3.6728 UAE dirham)
(Reporting by Saeed Azhar; editing by Richard Pullin)