Monday 14 September 2020

ADNOC completes $1 billion institutional placement for distribution business | Reuters

ADNOC completes $1 billion institutional placement for distribution business | Reuters:

State-run Abu Dhabi National Oil Company (ADNOC) said on Monday it had completed a placement to institutional investors of 10% in its subsidiary ADNOC Distribution’s ADNOCDIST.AD total share capital, or 1.25 billion shares, valued at $1 billion.

The placement will increase ADNOC Distribution’s free float to 20%, and contribute to improved liquidity of the company, ADNOC said in a statement. ADNOC will retain an 80% strategic stake in ADNOC Distribution and continues to see strong growth potential in the company, it added.

The transaction represents “the largest block placement of a publicly listed” company in the Gulf region and “leverages significant investor demand for ADNOC Distribution shares”, ADNOC said.

In 2017, ADNOC listed 10% of ADNOC Distribution, the largest operator of petrol stations and convenience stores in the United Arab Emirates, on the Abu Dhabi Securities Exchange.

ADNOC had been considering selling a bigger stake in its fuel distribution business, including a secondary listing overseas, after the initial public offering (IPO) in 2017, Reuters had reported.

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