UAE’s oil and gas drilling company ADNOC Drilling has announced that its stock has been selected for inclusion in the prestigious MSCI indexes effective after the market close on August 30, 2024.
Inclusion criteria
ADNOC Drilling will be added to the MSCI Indexes, including the MSCI Emerging Markets (MSCI EM) and MSCI United Arab Emirates (MSCI UAE) indexes, after meeting the necessary criteria. The company will become the 12th member of the MSCI UAE index.
Abdulrahman Abdulla Al Seiari, ADNOC Drilling’s CEO, commented that the company was immensely proud to become a new component of the MSCI. He stated that this milestone would allow ADNOC Drilling to further broaden and diversify its investor base and make its unique business model and return profile more visible to the global markets. Additionally, Al Seiari attributed this achievement to ADNOC Drilling’s unwavering commitment to operational excellence and safety, sustainable growth, investor focus, and the continuous support of its shareholders.
Read more: UAE’s ADNOC Drilling aims for $1.3 billion net profits and 148 rigs by 2026, says CFO
Furthermore, in May 2024, ADNOC successfully completed a placement of 880 million shares in ADNOC Drilling to institutional investors, raising $935 million. This represented 5.5 percent of ADNOC Drilling’s total issued and outstanding share capital and increased the company’s free float to 16.5 percent. This expansion of the free float allowed the company to meet all the necessary requirements for MSCI Index inclusion.
What are the benefits of MSCI Index inclusion?
Moreover, inclusion in the MSCI indexes will provide greater visibility for ADNOC Drilling among global investors and enhance the credibility of the stock in financial markets. This is expected to boost the liquidity of the stock, driven by passive inflows as well as potential interest from active institutional investors tracking the MSCI indexes.
The MSCI Emerging Markets Index (MSCI EM) captures the performance of large and mid-cap companies across 24 emerging market countries. The MSCI United Arab Emirates (MSCI UAE) Index is further designed to measure the performance of the large and mid-cap segments of the UAE stock market.
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