ADNOC Drilling is latest UAE stock to make it to MSCI index

Dubai: ADNOC Drilling is the latest listed stock from the UAE to make it to the MSCI index, and will do so after the market’s close on August 30. It thus becomes the 12th member of the MSCI UAE index – and help with visibility with global investors, including institutional buyers.

“This milestone will allow ADNOC Drilling to further broaden and diversify its investor base and make its unique business model and return profile more visible to the global markets,” said Abdulrahman Abdulla Al Seiari, CEO.

Free float increase

In May 2024, ADNOC did a placement of 880 million shares in ADNOC Drilling for $935 million with institutional investors. This represented 5.5 per cent of ADNOC Drilling’s total issued and outstanding share capital and increased the free float to 16.5 per cent.

"This increase in the free float allowed the company to meet all the necessary MSCI Index inclusion requirements," said a statement.

The listed companies from the UAE that feature in the MSCI universe include Emaar, the e& Group, FAB, DIB, Aldar, Emirates NBD and Americana Restaurants, among others. The current 11 constituents making up the MSCI UAE Index cover around 85 per cent of the UAE equity base.

Clear visibility for investors

Inclusion in MSCI indexes provides 'greater visibility' among global investors and 'increases the credibility of the stock' in financial markets. "Inclusion of the ADNOC Drilling stock is expected to boost liquidity, given the expected passive inflows as well as potential appetite from active institutional investors tracking MSCI indexes," said a statement.

The MSCI Emerging Markets Index (MSCI EM) features large and mid-cap representation across 24 Emerging Markets.

The MSCI UAE Index (MSCI UAE) is designed to measure the performance of the large and mid-cap segments of the UAE market.