ADNOC completes US$1 billion institutional placement of ADNOC distribution shares

Abu Dhabi National Oil Company, ADNOC, announced on Monday that it has successfully completed a placement to institutional investors of 1.25 billion shares in Abu Dhabi National Oil Company. This placement is for Distribution PJSC, ADNOC Distribution, which are listed and traded on the Abu Dhabi Securities Exchange, ADX.

This represents 10 per cent of ADNOC Distribution’s total share capital. With this additional 10 per cent placement, valued at US$1 billion, the company’s free float will increase to 20 per cent, 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. 

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This transaction is part of ADNOC’s stated strategy and its continued focus on value creation. The placement was priced at Dhs 2.95 per share, which is 18 per cent above the IPO price of Dhs 2.50 and represents a 5 per cent discount on the company’s three-month volume weighted average price.

ADNOC will own 80 per cent 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.

WAM