A 5.5% stake in Adnoc Drilling is up for grabs: Abu Dhabi National Oil Company (Adnoc) is offering up a 5.5% stake (or 880 mn shares) in its drilling unit, Adnoc Drilling, in a secondary sale to institutional investors, the state-run oil giant said in a statement (pdf). The stake is valued at USD 989 mn, based on Adnoc Drilling’s closing share price yesterday of AED 4.13.

An eye on the MSCI + more liquidity: Adnoc is offloading the stake to “enhance liquidity and trading in Adnoc Drilling’s ordinary shares and diversify its shareholder base,” as well as help support the “Abu Dhabi equity capital market while creating sustainable value for shareholders across its listed portfolio,” the statement reads.The share free float is also expected to see Adnoc Drilling joining the MSCI Emerging Market Index at the next quarterly index review, Adnoc said in the statement.

Book-building underway: The book-building period will kick off “immediately” and will wrap today, with the final pricing to be determined upon the conclusion of the book-building process.

REMEMBER- 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.

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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