State oil giant Abu Dhabi National Oil Co (ADNOC) has increased to 11% of share capital the size of the initial public offering (IPO) of its drilling unit, ADNOC Drilling, because of oversubscription, the firm said on Wednesday.
ADNOC had previously targeted a minimum stake of 7.5% in the IPO of ADNOC Drilling, at 2.3 dirhams ($0.6262) per share.
In a statement it said the price had not changed but the number of ordinary shares offered was raised to 1.76 billion from 1.2 billion, which would correspond to a $1.1 billion transaction, according to Reuters calculations.
"The new offering size was determined by ADNOC, as the selling shareholder, based on significant investor demand and the considerable oversubscription across all tranches," it said.
"The enlarged offering will enable a broader investor base to obtain exposure to ADNOC Drilling’s highly attractive value proposition."
ADNOC will continue to own an 84% majority stake in the unit, while Baker Hughes will retain its 5% shareholding.
The IPO subscription period will end on Thursday for United Arab Emirates retail investors and on Sunday for domestic and international institutional investors.
Listing is expected on or around Oct. 3, ADNOC said.
