ADNOC Drilling Lists Its Shares in MSCI Indexes

ADNOC Drilling announced yesterday that its shares will be included in the MSCI Indices, effective from market close on August 30, 2024, including MSCI EM and MSCI UAE, after meeting the necessary criteria. The company will thus become the 12th member of the MSCI UAE Index.

The company’s CEO, Abdulrahman Abdullah Al-Sayari, said: “Our success in listing the company in indices of the size of (MSCI) will enhance the company’s expansion efforts, contribute to diversifying its investor base, and support highlighting our business model and revenue profile more clearly in global markets.”

He added: “We achieved this accomplishment thanks to our unwavering commitment to achieving excellence and raising efficiency in all our operations, enhancing safety standards and sustainable growth, and focusing on investors. The continuous support of our shareholders also played an effective role in achieving this accomplishment.”

In May 2024, ADNOC successfully completed an institutional offering of 880 million shares in ADNOC Drilling for $935 million (AED 3.434 billion). The number of shares offered represents 5.5% of ADNOC Drilling’s total issued and outstanding share capital. The offering succeeded in increasing the free float of the company’s shares to 16.5%, allowing the company to meet all the necessary MSCI inclusion requirements. Inclusion in the MSCI indices provides the company with greater exposure, highlights it among global investors, and increases the credibility of the company’s shares in financial markets.

The listing of ADNOC Drilling shares is expected to boost liquidity, given the expected cash flows and potential demand from active institutional investors tracking MSCI indices.