“Rasmala”: We expect returns of more than 30% on the subscription to “ADNOC Drilling”

Ali Taqi, Head of Equity Management at Rasmala Investments, plans to realize ADNOC Drilling IPO Returns of 30% or more after making comparisons, defining the important list.

He said in an interview with “Al Arabiya”, that the subscription request was part of the coverage from day one, predicting that it will double for several reasons, including the attractive valuation and the occurrence of a deal after determining the number of shares.

He also pointed out that the sector represented by “ADNOC Drilling” and the company’s components contribute to increasing demand, specifying that the greatest requests usually arrive during the last two days of subscription.

The IPO of “ADNOC Drilling” closes on September 23, when the Abu Dhabi National Oil Company “ADNOC” announced a week ago the price of the IPO share of ADNOC Drilling at 2.30 dirhams per share, which makes the market value of the company 36.7 billion dirhams, equivalent to 10 billion dirhams of dollars.

The subscription period officially began last Monday and will close on September 23 for retail investors in the UAE and September 26 for qualified investors from local and international institutions. ADNOC Drilling is expected to be listed on the Abu Dhabi Securities Exchange on October 3, 2021.

The head of the equity department of Rasmala Investments believes that ADNOC Drilling’s judgment is good compared to international companies in its sector, many of which are recording losses, adding that the contracts signed with the parent company “ADNOC” guarantee it a sort of margin that makes its higher level of profitability than other similar companies.

In this context, he stressed that the company’s management promises to increase dividends by 5% during the first 5 years will support the increase in the stock price between 30 and 35% and bring dividends to 4.7% for be equal to the distributions of ADNOC Distribution despite the difference in their models of business.

Both the Saudi and Abu Dhabi markets are seeing momentum in IPOs questyear, which the head of the equity department of Rasmala Investments attributed to existing liquidity and current valuations.

He also pointed out that the next quotes are different and in various sectors, which is important for any economy because the stock market should be a mirror reflecting sectors of the economy, unlike what happened 20 years ago when the shares of banks and telecommunications companies were dominant, but now we are seeing the ” entry of petrochemical companies Real estate, aeronautics, ports, etc.

He added that Aramco’s IPO changed the prevailing view in the market, which ruled out offering upstream assets, stating that all government assets could be underwritten and get a valuation that would benefit customers. budget.

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