The leading operator of retail fuel stations in the United Arab Emirates (UAE) has announced its intention to proceed with an initial public offering (IPO).
The Abu Dhabi National Oil Company for Distribution PJSC is to list its shares for trading on the Abu Dhabi Securities Exchange.
The company intends a sale of at least 10% of its existing shares held by parent company Abu Dhabi National Oil Company (ADNOC).
ADNOC Distribution is the in-country fuel leader with an approximately 67% market share by number of retail fuel service stations, and the largest market share in the wholesale fuel segment.
ADNOC Distribution is also the operator of ADNOC Oasis convenience stores.
Its 235 ADNOC Oasis stores, make it the UAE’s largest retailer in the UAE by number of stores.
ADNOC Distribution is also the leading marketer and distributor of fuels to commercial, industrial and government customers throughout the UAE, with a particularly dominant position in Abu Dhabi, and provides refuelling and related services at seven commercial airports in the UAE.
The company is a wholly owned subsidiary of ADNOC, an integrated energy company owned by the Emirate of Abu Dhabi.
ADNOC was formed by the government of Abu Dhabi in 1971 to manage crude oil exploration, production and distribution in Abu Dhabi, developing the country into one of the world’s leading oil producers and fuelling the growth of Abu Dhabi and the UAE.
ADNOC is now one of the world’s leading oil and gas companies with a production capacity of around 3million barrels per day.
According to ADNOC, the IPO is a “fundamental” part of the company’s 2030 transformation strategy.
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State, ADNOC Group chief executive and chairman of ADNOC Distribution, said: “The ADNOC Group has embarked on an ambitious program of transformation and growth.
“Earlier this year, we announced the expansion of our strategic partnership model and the creation of new investment and business opportunities across all areas of our value chain, as well as the more proactive management of our portfolio of assets and capital structure.
“The IPO of ADNOC Distribution represents an important milestone in this new approach and is a natural evolution for the growth and expansion of this exciting retail-focused business.
“It also presents a unique opportunity for investors to take advantage of the UAE’s attractive and dynamic investment environment.
“We are pleased to support ADNOC Distribution as a public company and to offer UAE and international investors the opportunity to invest alongside us as the business looks to its next stage of growth.”
Five percent of the offering will be reserved for offer to the Emirates Investment Authority.
ADNOC Distribution is currently in the process of finalising the required approvals with regards to the offering.
Subsequent to this, the company will seek the regulatory approvals from the UAE Securities and Commodities Authority (“SCA”) and the ADX to proceed with the Offering and for the Admission to listing and trading on the ADX.
The completion of the offering and admission is currently expected to take place in December 2017, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including from the SCA.