Dubai: The UAE's biggest IPO in recent times - from ADNOC Drilling - pulled in a whopping $34 billion, getting oversusbcribed multiple times. The Abu Dhabi company's offer price was Dh2.3 a share, with the owner ADNOC offering up to 11 per cent in the drilling company. The earlier offer was for a 7.5 per cent float.
There was "significant demand" from UAE retail investors and institutional investors. The $34 billion tally implies an oversubscription level in excess of 31 times in aggregate.
On listing at ADX (October 3), ADNOC will own 84 per cent, while Baker Hughes, which entered into a strategic partnership with ADNOC Drilling in October 2018, will retain its 5 per cent holding. US oil services company Helmerich & Payne will hold 1 per cent through its IPO cornerstone investment announced on September 8.
The offer size was raised from 1.2 billion ordinary shares to 1.76 billion, equivalent to 11% of total issued share capital and an offer price of Dh2.30 per share.
Following the completion of the subscription period, the size of the first tranche (reserved for UAE Retail Investors) was set at 10 per cent. The size of the second tranche (reserved for local, regional and international qualified institutional investors) was set at 86 per cent. A third tranche (reserved for ADNOC Group Companies’ employees and UAE National retirees) was set at 4 per cent.
Investors from the first and third tranches will receive an SMS confirmation of their allocation on September 30.