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Abu Dhabi, UAEMonday 10 December 2018

Pressing on with IPO plans, Adnoc Distribution sets share price range

Adnoc Distribution plans to list next month on the Abu Dhabi stock market and opened the subscription of its initial public offering (IPO), setting the pricing between Dh2.35 and Dh2.95 per share. At this price range and on a 12.5 billion share count, this equates to approximately $8 to $10 billion in equity value, Adnoc Group chief executive Sultan Al Jaber said in a statement.

The IPO “centered around Adnoc’s recently announced strategy to more actively manage our assets and capital and represents a key milestone in the company’s ongoing transformation,” Mr Al Jaber said. “It will also support the continued evolution of Adnoc Distribution and accelerate growth of the business. Adnoc Distribution has enormous potential and we believe this IPO will help unlock the inherent value in the business.”

The company, which runs services stations and retail outlets, will list 1.25 billion to 2.5 billion shares - representing 10 to 20 per cent of the total shares of the company - in an offering of two tranches that will open for subscription on 26 November and close on 6 and 7 December, respectively. The first tranche of 5 per cent of the offering is open to local retail investors, while the rest will be offered to government, international institutional investors and high net worth individuals.

The minimum investment in shares for the retail offer has been set at Dh10,000, with any additional investments to be made in increments of at least Dh1,000. No maximum investment in the offering has been set, according to the statement.