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Hermes is joint placement manager for the initial public offering of ADNOC Drilling on the Abu Dhabi Securities Exchange


EFG Hermes acts as joint placement manager for the $1.1 billion initial public offering of ADNOC Drilling on the Abu Dhabi Securities Exchange.


The initial public offering of ADNOC Drilling, which is the largest offering on the Abu Dhabi Stock Exchange, will contribute to strengthening the stock markets in the UAE and Abu Dhabi, and confirms the leading position enjoyed by EFG Hermes in the implementation of capital markets deals. In the Middle East and North Africa region

 

EFG Hermes, the leading financial and investment institution in emerging and frontier markets, today announced the successful completion of its advisory services to the Abu Dhabi National Oil Company (ADNOC) for the initial public offering of ADNOC Drilling on the Abu Dhabi Stock Exchange. The value of the offering amounted to about 4 billion UAE dirhams (1.1 billion US dollars).


ADNOC has offered 1.8 million shares, equivalent to 11% of the company's total capital, at a price of 2.30 dirhams per share, divided into three segments; 10% for the individual investors segment in the UAE, 86% for the institutional segment, and the remaining 4% for the employee shares program; This brings the company's market capitalization to 36.8 billion dirhams (10 billion dollars). It is worth noting that EFG Hermes acted as the joint offering manager, while the trading process on the company's shares began today under the code (ADNOCDRILL).


In this context, Mohamed Fahmy, Co-CEO of the Promotion and Underwriting Sector at EFG Hermes, expressed his pride in the company’s success in completing its advisory services for the implementation of the listing of ADNOC Drilling on the Abu Dhabi Stock Exchange, as the largest initial public offering in the UAE in four years. . This deal is also a new addition to the record of EFG Hermes’ achievements in executing major financial market deals in the Gulf countries, as it comes after its remarkable role in executing the initial public offering of “Yahsat” on the Abu Dhabi Stock Exchange, with a value of 2.7 billion dirhams during the month of July. . These successes are a strong testament to the combined expertise of EFG Hermes in managing and executing major deals; Thanks to its extensive and complex network of relationships with major investment institutions around the world. Fahmy pointed to the remarkable turnout and interest in the ADNOC Drilling deal by the international investment community, which clearly reflects the strong recovery in the UAE capital markets thanks to the strong support and stimulus efforts made by the state. Fahmy praised the pivotal role played by EFG Hermes’ promotion and underwriting team in implementing major successful public offerings, benefiting from his previous supervisory work over the past several years in providing insightful advisory services to support the success of the most prominent capital market deals in the Middle East and North Africa region. . Fahmy affirmed his confidence that the success of this transaction will contribute to consolidating the reputation and leading position enjoyed by EFG Hermes and paving the way for seizing the attractive growth opportunities offered by the capital markets in the region.


ADNOC Drilling was established in 1972 and is the largest national drilling company in the Middle East in terms of rig fleet size in addition to being the sole provider of rig rental and some rig-related services to the ADNOC Group. ADNOC Drilling is also the region's first national integrated drilling services company, drilling and delivering end-to-end wells and services that span the entire drilling value chain. The company is an important link in ADNOC's exploration and production, as ADNOC continues to move towards the target production capacity of 5 million barrels per day by 2030 and enables the UAE to achieve self-sufficiency in gas.


It is worth noting that the Abu Dhabi National Oil Company (ADNOC) will remain, after the completion of the offering process, the majority stake in ADNOC Drilling, while Baker Hughes will retain its 5% stake in the company.


The year 2021 represented a milestone in the record of achievements in the promotion and underwriting sector of EFG Hermes, as the sector succeeded in completing 22 successful deals with a total value of about $4 billion, including 7 deals in the capital markets alone. This included the sector’s role as the joint offering manager for the public offering of “Yahsat” shares on the Abu Dhabi Securities Exchange, at a value of AED 2.7 billion, in addition to its role as the sole financial advisor and joint offering manager for the offer of Fawry Company’s shares on the Egyptian Stock Exchange, at a value of 1.2 billion dirhams. Egyptian pound, and assuming the role of the offering manager and underwriter in the public offering of the shares of “Al-Khorayef” water purification and energy company in the Saudi stock market “Tadawul” amounting to 144 million US dollars, as well as the initial offering of Theeb Rent a Car with a value of 138 million US dollars in the market The Saudi Stock Exchange "Tadawul", in addition to completing its advisory services for two merger and acquisition deals for Agthia during the year.

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