EFG Hermes Orchestrates Successful $935 Million Offering for ADNOC Drilling

EFG Hermes, the leading investment bank in the Middle East and North Africa (MENA) region, announced the successful closing of a landmark $935 million accelerated equity offering (AEO) for ADNOC Drilling Company. This transaction marks a significant achievement for both companies, solidifying EFG Hermes' position as a trusted advisor for major deals in the region and boosting ADNOC Drilling's capital structure.

The AEO, executed by EFG Hermes' investment banking division, attracted strong interest from institutional investors across the GCC and internationally. The offering price was set at AED 3. 9 per share, reflecting a notable increase of approximately 70% compared to ADNOC Drilling's initial public offering (IPO) price of AED 2. 3 per share. However, it also represented a slight discount of 5. 6% relative to the company's closing share price on May 22, 2024.

This successful offering by EFG Hermes is considered a milestone for the region's financial sector due to its sheer size. The substantial capital injection of $935 million will enhance ADNOC Drilling's financial flexibility and empower the company to pursue strategic growth initiatives. The offering also expands ADNOC Drilling's free float to 16. 5%, which refers to the portion of a company's shares readily available for trading on the stock market. This increase in free float fosters greater liquidity and potentially attracts a wider range of investors to the company.

The transaction is a testament to EFG Hermes' proven expertise in navigating complex financial operations. The investment bank's deep understanding of the regional market and its established relationships with institutional investors were instrumental in securing strong demand for the AEO. With this successful offering, EFG Hermes further cements its reputation as a leading player in the MENA region's investment banking landscape.

The positive outcome of the AEO is expected to have a ripple effect on the broader UAE economy. The influx of capital into ADNOC Drilling, a key player in the oil and gas sector, signifies investor confidence in the country's economic prospects. This, in turn, can contribute to increased economic activity and job creation within the UAE.

Settlement of the offering is anticipated to take place around May 28, 2024. This successful transaction by EFG Hermes is a strong indicator of continued investor interest in the MENA region and paves the way for future growth in the region's capital markets.

Previous Article Next Article