The Abu Dhabi National Oil Company (ADNOC) will float a minority stake of its fuel distribution and retail subsidiary, ADNOC Distribution, on the Abu Dhabi Securities Exchange (ADX) by the end of 2017, according to a statement today on United Arab Emirates state news agency WAM.
At least 10 percent of the company will be listed in the initial public offering (IPO), which is pending regulatory approvals, ADNOC CEO Sultan Al Jaber said, speaking at the ADIPEC conference in Abu Dhabi.
@AdnocGroup announced today its intention to #IPO a minority stake in @AdnocDist on the @ADX_AE, subject to regulatory approval pic.twitter.com/nUufB9yL24
— AdnocGroup (@AdnocGroup) November 13, 2017
ADNOC Distribution owns and operates a network of 360 fuel service stations and 235 convenience stores across the UAE.
The company also markets and distributes fuels to commercial, industrial and government customers throughout the country.
The upcoming IPO "will offer both UAE and international investors an unprecedented opportunity to invest alongside ADNOC in one of the region’s leading consumer brands," Al Jaber said.
ADNOC will continue to retain the majority shareholding in the company after the IPO, which will be the first time the Abu Dhabi oil giant has publicly listed any of its group companies.
According to a previous report, ADNOC Distribution could ultimately be valued at about $10 billion and raise up to $3 billion from the IPO.
ADNOC is the world’s 12th largest oil producer, with production of approximately 3 million barrels per day. The company manages 95 percent of the UAE’s proven oil reserves and 92 percent of the country’s gas reserves.
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