First Published: 2017-12-13

UAE oil giant floats 10 percent of retail arm to strong interest
Abu Dhabi National Oil Company raises $845 million by listing retail arm leading to it being oversubscribed several times due to strong investor interest.
Middle East Online

The initial public offering price for the shares was at 2.5 dirhams

ABU DHABI - Investor interest was strong Wednesday as Abu Dhabi's state energy company listed a stake in its retail distribution arm, the first time the emirate has sold shares in one of its oil firms.

The Abu Dhabi National Oil Company said it had raised $845 million by floating 10 percent of its subsidiary ADNOC Distribution, a landmark share offering as Gulf energy firms open up to outside investments.

The initial public offering price for the shares was at 2.5 dirhams (68 US cents) and by 0915 GMT they were trading at 73 cents.

ADNOC said the IPO brought the subsidiary's market capitalisation to $8.5 billion, making it the fourth-largest firm on the Abu Dhabi Securities Exchange.

The statement said the IPO was oversubscribed several times and that 90 percent of the shares were sold to institutional investors, a third of them international, and the rest to individual investors.

Abu Dhabi, the UAE capital which holds more than 90 percent of the country's 98 billion barrels of crude reserves, has never before offered public shares in one of its oil companies.

Hit hard by the sharp drop in oil prices, energy-dependent Gulf states have resorted to a string of reforms including hiking fuel and power prices, imposing taxes and selling off part of their strategic assets to raise funds.

Neighbouring oil kingpin Saudi Arabia is planning to eventually float up to five percent of its national oil company Aramco, in what many expect would be the biggest IPO in history.

With 360 fuel stations and more than 235 stores, ADNOC Distribution is the UAE's largest operator of petrol stations and the sole retail fuel operator in the emirates of Abu Dhabi and Sharjah.

"We were extremely pleased with the demand for this landmark IPO. We received substantial interest from the international investment community, as well as an overwhelming response from investors in the UAE," ADNOC CEO Sultan al-Jaber said in the statement.

Established in 1973, ADNOC Distribution posted net profits of $485 million in 2016.

ADNOC has recently renewed concession rights and offered new joint ventures to a number of international oil companies as it bids to raise UAE output to 3.5 million barrels per day next year, from the current 3.2 million bpd.

 

Sudan clamps down on journalists covering bread protests

Egypt's Sisi says will stand for re-election

Turkey launches new strikes on Kurdish targets in Syria

Pence heads to Mideast despite Muslim, Christian anger

US to overtake Saudi as world’s second crude oil producer

Iraqi, Kurdish leaders hold talks on bitter regional dispute

Russia-led Syria peace congress to be held January 30

Assad regime says Syria a 'tourist' destination

Journalists arrested while reporting Sudan protests

Aid for millions of Palestinians hostage to politics

Lebanon thwarts holiday attacks using IS informant

Mortar fire wounds 14 in Syria mental hospital

Turkish military fires on Kurdish forces in Syria's Afrin

More than 32,000 Yemenis displaced in intensified fighting

UN warns of "lost generation" in South Sudan's grinding conflict

Saudi's refined oil exports offset crude curbs

Turkey's EU minister rejects any option other than full membership

Tribal feuds spread fear in Iraq's Basra

Turkey says not reassured by US comments on border force

UN chief wants to revive Syria gas attack probe

US has no intention to build border force in Syria

Lebanese intelligence service may be spying using smartphones worldwide

Egypt's Sisi sacks intelligence chief

Trump dashes Netanyahu’s hope to move US embassy to Jerusalem

Cyprus denies bail for Israeli organ trafficker

Rising Yemen currency sparks hopes of relief

Turkish ministries to investigate underage pregnancy cover-up

Iraq PM launches online appeal for election allies

Iran central bank sees claim for billions from German stock market blocked

Iraq signs deal with BP to develop Kirkuk oil fields

Israeli occupation forces raid Jenin, kill Palestinian

HRW chief says 'Nobody should be forcibly returned to Libya'

IS poses threat to Iraq one month after 'liberation'

Seven years since ousting dictator, Tunisians still protest

Iran says Trump jeopardising Airbus deals

China says Iranian oil tanker wreck located

Sudan arrests communist leader after protests

Syrian opposition joins condemnation of US 'border force'

Israeli judge detains teen until trial for viral ‘slap video’

Arab league slams US freeze of Palestinian funding

Dubai billionaire to sell 15 percent Damac stake

Britain to put women at heart of peace work in Iraq, Nigeria, South Sudan

Saudi to give Yemen government $2bn bailout

US withholds $65 million from UN agency for Palestinians

Saudi Arabia intercepts new Yemen rebel missile attack