US$1bn Adnoc distribution share placement completed

DG Staff

ABU DHABI 15 September 2020: Abu Dhabi National Oil Company (Adnoc), announced on Monday that it has successfully completed a placement to institutional investors of 1.25 billion shares in Abu Dhabi National Oil Company for Distribution PJSC (Adnoc Distribution), which are listed and traded on the Abu Dhabi Securities Exchange (ADX).

This represents 10 percent of Adnoc Distribution’s total share capital. With this additional 10 percent placement, valued at US$1 billion, the company’s free float will increase to 20 percent, contributing to improved liquidity of Adnoc Distribution.

At the time of Adnoc Distribution’s initial public offering in 2017, Adnoc conveyed its intention to sell more of its shareholding in Adnoc Distribution to increase the stock’s free float and liquidity on the ADX and provide an attractive investment opportunity, while continuing to hold a majority strategic stake in the company, said official news agency Wam.

This transaction is part of Adnoc’s stated strategy and its continued focus on value creation. The placement was priced at AED 2.95 per share, which is 18 percent above the IPO price of AED 2.50 and represents a 5 percent discount on the company’s three-month volume weighted average price.

Adnoc will own 80 percent of Adnoc Distribution’s registered share capital following the placement and continues to see strong and deliverable growth potential in the company.

Adnoc launched this placement due to significant investor demand for Adnoc Distribution stock and has delivered the largest block placement of a publicly listed GCC company to date.

Dr. Sultan Ahmed Al Jaber, Adnoc Group CEO, said, “Since its initial public offering in 2017, Adnoc Distribution has continued to deliver on its growth ambitions, introduced a range of new customer-orientated services and enhanced its progressive dividend policy. It has delivered solid business results and demonstrated to customers and investors its resilience and steadfast focus on safe, smart growth. We saw significant investor demand in Adnoc Distribution shares and quickly and efficiently responded through an institutional placement.”

Citigroup Global Markets Limited and First Abu Dhabi Bank PJSC acted as Joint Bookrunners on the transaction. Moelis & Company acted as independent financial advisor to Adnoc.

Adnoc Distribution is a leading fuel distributor and convenience store operator in the United Arab Emirates. As at 30 June 2020, Adnoc Distribution operates 406 retail fuel service stations in the UAE and two retail fuel service stations in the Kingdom of Saudi Arabia.

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