Monday, 11 December 2017

Adnoc IPO Valuation Holds Lessons for Saudi Aramco's Sale - Bloomberg

Adnoc IPO Valuation Holds Lessons for Saudi Aramco's Sale - Bloomberg:

"When the state-owned oil company of the United Arab Emirates decided to sell a stake in its fuel-retailing unit, it had a lofty valuation target. 

The Abu Dhabi National Oil Co., or Adnoc, was seeking a valuation of between $10 billion to $14 billion, people familiar with the matter said in July. Nearly half a year later, Adnoc is settling for far less: $8.5 billion. The company hasn’t commented publicly on the valuation.

That drop will resonate through the Middle East, where governments are counting on their oil giants to raise cash. The Adnoc fuel-distribution IPO is the first of several expected in the region -- most notably that of Saudi state-owned oil giant Aramco -- a trend that will partly reverse the nationalization of the Middle East’s energy industry that started in 1950."



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