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Trading on ADNOC Distribution IPO begins

Dec 13, 2017
4 min read
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ADNOC Distribution successfully listed its shares on the Abu Dhabi Securities Exchange (ADX) today following a bell ringing ceremony led by His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO and His Excellency Hamad Al Shamsi, Chairman of the ADX.

 The IPO of ADNOC Distribution was officially launched on November 13th 2017, and forms part of ADNOC’s strategy to more pro-actively manage its business assets and capital. The successful listing represents a further milestone in this ongoing transformation of ADNOC, and is a tangible example of ADNOC executing the comprehensive value creation strategy it announced in July.

The listing, which can be found under the ADX symbol “ADNOCDIST”. will act as a catalyst to unlock value and drive growth for both the wider ADNOC Group and ADNOC Distribution. 

H.E. Dr Al Jaber said: “As we accelerate the transformation of ADNOC to drive value, growth and returns across our business, we are also undertaking a number of important, strategic transactions that are unprecedented in ADNOC’s history. Transactions, such as this IPO, will allow ADNOC to better manage our capital and portfolio of assets, and expand our range of new and existing partnerships – from the Upstream to the Downstream. The IPO also supports the reinvigoration of the ADX, and will be a catalyst for further growth and development of the UAE capital markets.”

“We were extremely pleased with the demand for this landmark IPO. We received substantial interest from the international investment community, as well as an overwhelming response from investors in the UAE. We now look forward to delivering the business and growth objectives of ADNOC Distribution, as well as the long term, sustainable returns and benefits to our new investors and the UAE.” 

The shares of ADNOC Distribution were priced at AED 2.50 per share on December 8th 2017, giving the company a market capitalization of approximately AED 31.3 billion at the time of listing.

The IPO was multiple times oversubscribed on the qualified investor tranche, and the retail tranche was oversubscribed 22 times on the original retail tranche size. To accommodate for the level of retail investor demand, the retail tranche was doubled in size.

H.E. Hamad Abdulla Al Shamsi, Chairman of ADX said, “The ADNOC Distribution IPO has attracted a large number of investors, which is a testament to the strong confidence in the quality and diversity of investment opportunities offered by ADX, and its ability to achieve sustainable growth. The IPO is also characterized by principles of efficiency and transparency, two key-elements on which ADX was established, and on which it accordingly operates. Adding ADNOC Distribution to the number of listed companies on ADX underscores the confidence in Abu Dhabi’s economy and the local financial market. Listing here acknowledges ADX’s advanced infrastructure, designed to meet the highest international standards for securities and equity trading, and its advanced legal framework characterised by fairness in transparency and disclosure."