Adnoc Drilling sells USD 935 mn stake in rare UAE secondary sale

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 free float 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.

The larger float 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).

DATA POINT: This one of only a handful of secondary sales to take place on a UAE exchange, according to Bloomberg.

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.

THE CLOSING BELL: TADAWUL-

The TASI fell 1.3% on Thursday on turnover of SAR 5.6 bn. The index is up 0.2% YTD.

In the green: Al Baha (+7.7%), Ayyan (+6.3%) and Riyadh Cables (+5.7%).

In the red: Bupa Arabia (-6.6%), BSF (-5.1%) and Gulf General (-4.8%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.6% on Thursday on turnover of SAR 49.2 mn. The index is up 8.8% YTD.

In the green: Al Rasheed (+13.6%), Al Modawat (+6.9%) and Dar AlMarkabah (+6.6%).

In the red: NBM (-9.6%), Bena (-5.8%) and Rawasi (-5.3%).

CORPORATE ACTIONS-

#1- Shareholders of Tadawul-listed Banque Saudi Fransi have approved a dividend of SAR 1.2 bn at SAR 1 per share for 2H 2023, it said in a regulatory filing to Tadawul (pdf). The distribution date was set for Tuesday, 11 June. This brings the total dividends distributed to shareholders for FY 2023 to SAR 2.3 bn at SAR 1.95 apiece. Shareholders also approved a share buyback of up to 2.9 mn shares to be earmarked for the bank’s share-based employee remuneration program. The self-financed buyback is set to materialize within a maximum period of 12 months.

#2- Shareholders of Tadawul-listed National Medical Care have approved a dividend of SAR 89.7 mn at SAR 2 per share for FY 2023, it said in a disclosure to Tadawul. Eligible shareholders will be able to cash out on Wednesday, 12 June. They also approved a share buyback of up to 160k shares to allocate them within the company’s employee stock program.

#3- The board of Tadawul-listed Saudi Steel Pipe has recommended a dividend distribution of SAR 37.5 mn at SAR 0.74 per share for FY 2023, it said in a disclosure to Tadawul.

#4- The board of Tadawul-listed Aljazira Takaful Taawuni has recommended a dividend of SAR 19.8 mn at SAR 0.30 apiece for FY 2023, it said in a disclosure to Tadawul.

#5- The Capital Market Authority has cleared ICT solutions provider Perfect Presentation for Commercial Services (2P) to double its capital to SAR 300 mn, according to a statement. The capital increase will see the transfer of SAR 150 mn in retained earnings to the company’s capital.

#6- The Capital Market Authority has cleared pipes manufacturer Arabian Pipes to increase its capital by 50% to SAR 150 mn t, according to a statement. The capital hike will see the transfer of SAR 50 mn from retained earnings to the company’s capital.