ADNOC completes Institutional Placement of ADNOC Distribution shares for USD 1 billion


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Comserve Inc.

Sep 16, 2020, 07:26 EST


Bronx, United States, Sep 16, 2020, 07:26 /Comserve / -- According to an announcement by Abu Dhabi National Oil Company (ADNOC) and its subsidiaries (ADNOC Group), a placement to institutional investors valued at 1.25 billion shares has been successfully completed.

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Abu Dhabi, UAE, Sept. 15, 2020: According to an announcement by Abu Dhabi National Oil Company (ADNOC) and its subsidiaries (ADNOC Group), a placement to institutional investors valued at 1.25 billion shares has been successfully completed. These represent 10% of the total share capital of ADNOC Distribution. Valued at USD 1 billion, this additional 10% placement will increase the company’s free float to 20%. This will improve the liquidity of ADNOC Distribution shares.

During ADNOC Distribution’s initial public offering back in 2017, ADNOC had mentioned that it will sell more of its shareholding in ADNOC Distribution. This would increase the stock’s free float and liquidity and also provide an investment opportunity. With a continued focus on value creation, this transaction is a part of ADNOC’s stated strategy. With 18% above the IPO price of AED 2.50, the placement was priced at AED 2.95 per share. This represented a 5% discount on the 3-month volume-weighted average price of the company. While continuing to see strong and deliverable growth potential in the company, ADNOC will own 80% of ADNOC Distribution’s registered share capital after the placement.

This transaction not only emphasizes the attractive nature of ADNOC Distribution but also emphasizes the quality investment opportunities that are offered by ADNOC. These opportunities also point out that investment in Abu Dhabi and also the United Arab Emirates can be considered by potential investors. It is for these very investors that the unique opportunity was presented where a sizable stake in ADNOC Distribution was within reach. They could also invest in a stable and highly compelling equity story that had an attractive and resilient dividend policy.

ADNOC, on Sept 2, 2020, announced a long-term strategic investment with accounts and entities that are owned and/or advised by Apollo Global Management Inc. along with its subsidiaries. Apollo is one of the world’s largest group on institutional investors and an alternative investment manager. The partnership was signed for an underlying real estate portfolio valued at USD 5.5 billion.

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