ADNOC Distribution IPO - the largest at ADX in decade - was oversubscribed 22 times
ADNOC Distribution shares have been priced at AED 2.50 per share, making it the largest IPO on the Abu Dhabi Security Exchange (ADX) in the last decade and the fourth largest capitalisation on the ADEX, with a market capitalisation of AED 31.1 billion ($8.5 billion)
The retail and individual investor tranche of the offering – the first on the ADX in the last six years - was oversubscribed by 22 times on the retail or individual investor tranche, which led to a decision to increase the retail tranche size to 10 percent of the offering, totaling 1,250,000,000 shares.
ADNOC will retain 90 percent shareholding in the company. ADNOC Distribution will be the only large retail sector stock listed on the ADX, where it is also the first ever international offering.
The transaction also marks the first IPO on the ADE using a book building process, which the company says is in line with international best practice and “has led to substantial interest and engagement from high quality, global institutional investors”, which, in turn, allows for increased Foreign Direct Investment into the UAE.
In a note to investors on its website, ADNOC noted that the IPO “creates a new platform and route for further value creation.”
“This important and strategic offering represents a unique opportunity for investors to own a stake in the UAE’s number one fuel retail brand, and largest network of retail convenience stores,” said ADNOC Group CEO Dr. Sultan Ahmed Al Jaber.
“ADNOC Distribution’s strong business model, unique market position and attractive growth prospects has garnered healthy and solid demand for the IPO, which has set a new benchmark for the UAE equity capital markets.
“ADNOC Distribution will continue to receive the full support and commitment of the ADNOC Group as it begins the next phase of its growth and transformation, as one of the UAE’s leading listed companies,” he added.
The subscription period for UAE investors ended on Wednesday, while the institutional tranche closed its subscription period on Thursday.