Abu Dhabi's ADNOC nets $1b selling 10% in ADNOC Distribution to institutional investors

In all, 1.25b shares were sold at Dh2.95 apiece in Gulf's 'largest block placement'

Dubai: Abu Dhabi National Oil Company has completed the placement of 1.25 billion shares in Abu Dhabi National Oil Company for Distribution (ADNOC Distribution) to institutional investors. The latter's shares are listed on the Abu Dhabi Securities Exchange.

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

This is the "largest block placement of a publicly listed GCC company to date".

At the time of ADNOC Distribution’s initial public offering in 2017, ADNOC conveyed its intention to sell more of its shareholding in it to increase the stock’s free float and liquidity on the ADX... while continuing to hold a majority strategic stake in the company. The placement was priced at Dh2.95 per share, which is 18 per cent above the IPO price of Dh2.50. (It 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.

In a statement, Dr. Sultan Ahmed Al Jaber, ADNOC Group CEO, said: “We saw significant investor demand in ADNOC Distribution shares and quickly and efficiently responded through an institutional placement. 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."