Abu Dhabi - Mubasher: Abu Dhabi National Oil Company (ADNOC) has completed a placement of 1.25 billion shares of Abu Dhabi National Oil Company for Distribution (ADNOC Distribution).
Representing 10% of the ADNOC Distribution's total share capital, these shares were sold to institutional investors at a total value of $1 billion (AED 3.7 billion), according to a press release on Monday.
The placement was priced at AED 2.95 per share, up 18% from the initial public offering (IPO) price of AED 2.50, and represents a 5% discount on the company’s 3-month volume weighted average price.
Hence, the company’s free float will rise to 20%, contributing to improved liquidity of ADNOC Distribution shares.
Following the placement, ADNOC will own 80% of ADNOC Distribution’s registered share capital.
Due to significant investor demand for ADNOC Distribution stock, ADNOC launched this placement and has delivered the largest block placement of a publicly listed GCC company to date.
The ADNOC Group CEO, Sultan Ahmed Al Jaber, said: "Since its initial public offering in 2017, ADNOC Distribution has continued to deliver on its growth ambitions, introduced a range of new customer-orientated services and enhanced its progressive dividend policy."
