Abu Dhabi National Oil Co (ADNOC) will raise as much as 3.31 billion dirhams ($902 million) from the initial public offering of its fuel-retailing unit after lowering the top end of the offer price and deciding to only sell a 10 percent stake.
The crude producer reduced the price range to 2.35 dirhams to 2.65 dirhams for the shares of Abu Dhabi National Oil Co for Distribution, according to terms seen by Bloomberg News. The initial price range was 2.35 dirhams to 2.95 dirhams. The company initially planned to sell as much as 20 percent.
The offering is covered throughout the revised price range, according to the document.
Adnoc, which pumps most of the crude in the UAE, plans to announce the final pricing on Dec 8, with the stock expected to begin trading on Dec 13 in Abu Dhabi. The shares would be priced to give investors “a successful after-market performance,” John Carey, Adnoc Distribution’s deputy chief executive told Bloomberg last week.
IPO activity in the UAE is picking up after only two deals were completed throughout 2015 and 2016. Emaar Properties raised $1.3 billion from the sale of shares in its development unit last month, while Mubadala Investment Co expects to IPO its Emirates Global Aluminium unit next year.
Emaar Development struggled to complete its offering as a crackdown on corruption in Saudi Arabia hurt market sentiment and led investors to pull orders, people familiar with that deal said.
The Adnoc Distribution IPO is being coordinated by Citigroup, First Abu Dhabi Bank, HSBC Bank and Merrill Lynch International. EFG-Hermes UAE, Goldman Sachs Group and Morgan Stanley are acting as joint bookrunners for the offering. Rothschild & Co is the sole financial adviser to Adnoc and Adnoc Distribution.
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