ADNOC Distribution, a subsidiary of Abu Dhabi National Oil Company (ADNOC), has successfully listed its shares on the Abu Dhabi Securities Exchange (ADX)
The IPO of ADNOC Distribution was officially launched on 13 November, and forms part of ADNOC’s strategy to more pro-actively manage its business assets and capital. The listing will act as a catalyst to unlock value and drive growth for both the wider ADNOC Group and ADNOC Distribution.
HE Dr Al Jaber, UAE Minister of State and ADNOC Group CEO said, “Transactions such as this IPO, will allow ADNOC to better manage our capital and portfolio of assets, and expand our range of new and existing partnerships – from the Upstream to the Downstream. The IPO also supports the reinvigoration of the ADX, and will be a catalyst for further growth and development of the UAE capital markets.”
The Minister went on to say that demand for the IPO had been strong, with substantial interest from the international investment community and UAE investors. The IPO was many times oversubscribed. To accommodate for the level of retail investor demand, the retail tranche was doubled in size.
The shares of ADNOC Distribution were priced at AED 2.50 per share on 8 December, giving the company a market capitalisation of approximately AED 31.3bn at the time of listing.
The landmark IPO represents the first international offering on the ADX, the first on the ADX since 2011 and the largest IPO on the ADX in the last 10 years. Based on its market capitalisation at listing, ADNOC Distribution is expected to be the fourth largest company listed on the ADX.
HE Hamad Abdulla Al Shamsi, chairman of ADX said, “The ADNOC Distribution IPO has attracted a large number of investors, which is a testament to the strong confidence in the quality and diversity of investment opportunities offered by ADX, and its ability to achieve sustainable growth. Adding ADNOC Distribution to the number of listed companies on ADX underscores the confidence in Abu Dhabi’s economy and the local financial market.”
