Adnoc Drilling sells 5.5% stake to investors: Abu Dhabi National Oil Company (Adnoc) Drilling sold a 5.5% stake in a secondary sale for USD 935 mn, after attracting “strong demand from institutional investors in the GCC and internationally,” it said in an ADX disclosure (pdf) on Thursday. The share sale increases the Adnoc subsidiary’s freefloat to 16.5%, with Adnoc holding onto a 78.5% stake. The company set its final offering price at AED 3.90 per share, 70% above its IPO price of AED 2.30.

Remember: Adnoc announced plans to offer up a 5.5% stake (or 880 mn shares) in its drilling unit, Adnoc Drilling, in a secondary sale to institutional investors on Wednesday. The stake was initially valued at USD 989 mn, based on Adnoc Drilling’s closing share price of AED 4.13 at the time. Adnoc Drilling went public in October 2021, offering an 11% stake and raising USD 1.1 bn. Adnoc retained an 84% stake, while Baker Hughes held a 5% stake in the drilling arm.

It is not often that the UAE sees secondary listings, Adnoc Drilling’s was one of just a handful the country has seen.

The increased freefloat may provide a pathway to allow Adnoc Drilling to join the MSCI Emerging Market Index at the next quarterly index review, according to the disclosure. It will also “enhance liquidity and trading in Adnoc Drilling’s ordinary shares and diversify its shareholder base” the oil and gas giant said in an earlier disclosure (pdf).

Advisors: Our friends at EFG Hermes UAE, along with First Abu Dhabi Bank, Goldman Sachs International, and JP Morgan Securities are joint global coordinators and joint bookrunners for the offering.

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THE CLOSING BELL-

The EGX30 fell 0.1% at Thursday’s close on turnover of EGP 5.3 bn (8.5% above the 90-day average). Regional investors were net sellers. The index is up 9.3% YTD.

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