This transaction is part of ADNOC's stated strategy and its continued focus on value creation
Abu Dhabi National Oil Company (ADNOC) has completed a placement to institutional investors of 1.25 billion shares in 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 $1 billion, the company’s free float will increase to 20 percent, contributing to improved liquidity of ADNOC Distribution shares, the company said in a statement.
The placement was priced at 2.95 UAE dirhams per share, which is 18 percent above the IPO price of 2.50 UAE dirhams and represents a 5 percent discount on the company’s 3-month volume weighted average price.
Dr. Sultan Ahmed Al Jaber, ADNOC Group CEO, said: "This transaction highlights the attractive nature of ADNOC Distribution to investors, and once again demonstrates the high quality investment opportunities offered by ADNOC and more broadly by Abu Dhabi and the United Arab Emirates."
"For the investors, it presented a unique opportunity to access a sizeable stake in ADNOC Distribution and invest in a stable and highly compelling equity story, with an attractive and resilient dividend policy. It also contributes to increased liquidity in the trading of shares in ADNOC Distribution, while broadening the shareholder base," he added.
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.
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.