Abu Dhabi National Oil Company (Adnoc) has completed a placement to institutional investors of 1.25 billion shares worth $1 billion in Adnoc Distribution which are listed and traded on the Abu Dhabi Securities Exchange (ADX).
This represents 10% of Adnoc Distribution’s total share capital. With this additional 10% placement, the company’s free float will increase to 20%, contributing to improved liquidity of Adnoc Distribution shares.
The placement was priced at AED2.95 ($0.80) per share, which is 18% above the IPO price of AED2.50 and represents a 5% discount on the company’s 3-month volume weighted average price. Adnoc will own 80% of Adnoc Distribution’s registered share capital following the placement and continues to see strong and deliverable growth potential in the company.
Adnoc launched this placement due to significant investor demand for Adnoc Distribution stock and has delivered the largest block placement of a publicly listed GCC company to date.
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 UAE.”
“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.
Citigroup Global Markets Limited and First Abu Dhabi Bank PJSC acted as Joint Bookrunners on the transaction. Moelis & Company acted as independent financial advisor to Adnoc. – TradeArabia News Service