ADNOC successfully completes USD 1 Billion institutional placement of ADNOC distribution shares

Abu Dhabi National Oil Company (“ADNOC” and, together with its subsidiaries, “ADNOC Group”), announced today that it has successfully completed a placement to institutional investors of 1.25 billion shares in Abu Dhabi National Oil Company for Distribution PJSC (“ADNOC Distribution”), which are listed and traded on the Abu Dhabi Securities Exchange (the “ADX”) (ISIN: AEA006101017) (ADX Symbol: ADNOCDIST). This represents 10% of ADNOC Distribution’s total share capital. With this additional 10% placement, valued at USD 1 billion, the company’s free float will increase to 20%, contributing to improved liquidity of ADNOC Distribution shares. 

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 and provide an attractive investment opportunity, while continuing to hold a majority strategic stake in the company. This transaction is part of ADNOC’s stated strategy and its continued focus on value creation. The placement was priced at AED 2.95 per share, which is 18% above the IPO price of AED 2.50 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.

H.E. Dr. Sultan Ahmed Al Jaber, ADNOC Group CEO, said: “Since its initial public offering in 2017, ADNOC Distribution has continued to deliver on its growth ambitions, introduced a range of new customer-orientated services and enhanced its progressive dividend policy. It has delivered solid business results and demonstrated to customers and investors its resilience and steadfast focus on safe, smart growth. We saw significant investor demand in ADNOC Distribution shares and quickly and efficiently responded through an institutional placement. 

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. 

The ADNOC Group fully supports ADNOC Distribution as a committed and long term majority shareholder and remains confident that the company will continue to excel as a leading fuel and convenience retailer in the region.”

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.