The Abu Dhabi National Oil Company (Adnoc) said that it has set the offer price per share for the initial public offering (IPO) of Adnoc Drilling Company at AED2.30 ($0.62), implying an equity value of $10 billion.

The offer price was determined by Adnoc, as the selling shareholder, and Adnoc Drilling, following investor engagement that saw significant strong initial demand indications from both local and international investors, ahead of the start of the subscription period, which opens today (September 13), reported Emirates News Agency WAM.

Adnoc and Adnoc Drilling said that the offer price per share provides investors with a highly attractive value proposition that reflects Adnoc’s long-term confidence in Adnoc Drilling’s growth trajectory. This decision also reflects Adnoc’s prioritisation of a supportive aftermarket performance post-listing.

The decision to set the price per share also reiterates one of Adnoc’s key objectives to further support the growth, strength and diversification of the UAE and Abu Dhabi equity capital markets.

The subscription period for the Adnoc Drilling IPO opens today and will close on September 23 for UAE retail investors and on September 26 for qualified domestic and international institutional investors. Adnoc Drilling is expected to list on the ADX on or around October 3, 2021, the report said.