Abu Dhabi National Oil (ADNOC) has increased the size of the ordinary shares offered in the initial public offering (IPO) of its drilling unit ADNOC Drilling to $1.1bn.

Following approval from the UAE Securities and Commodities Authority (SCA), the decision to increase the issued share capital of the drilling unit to 11% from the previous target stake of 7.5% comes in the wake of oversubscription.

The firm said in a statement: “The new offering size was determined by ADNOC, as the selling shareholder, based on significant investor demand and the considerable oversubscription across all tranches.

“The enlarged offering will enable a broader investor base to obtain exposure to ADNOC Drilling’s highly attractive value proposition.

ADNOC said it has not changed the share price, each at $0.6262 (AED2.3), but increased the number of ordinary shares offered from 1.2 billion to 1.76 billion, which would correspond to a transaction worth $1.1bn.

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By GlobalData

Open to institutional and individual investors, the offering is ADNOC’s second public flotation after it listed ADNOC Distribution in 2017.

Post-IPO, ADNOC will retain a majority stake in the drilling unit, in which Baker Hughes owns 5% of the share capital.

The company previously said that the IPO is part of its plan to actively manage and optimise its assets portfolio while creating new investment opportunities across its business.

By the end of this decade, ADNOC Drilling aims to increase crude oil production capacity to five million barrels per year and unconventional gas capacity to one billion cubic feet per day.