Abu Dhabi National Oil Co (Adnoc) plans to sell as much as a fifth of its distribution unit via an initial public offering on the local stock exchange.
The state-owned crude producer will offer 1.25 billion to 2.5 billion shares of its fuel station business on the Abu Dhabi Securities Exchange, it said in an advertisement published in local media on Monday. The price range for the sale will be announced on November 26.
With global crude prices at about half of their 2014 average, energy companies and state producers alike are seeking to trim costs and boost efficiency. Adnoc pumps most of the crude in the UAE, a member of the Organization of Petroleum Exporting Countries that accounts for about 6 percent of global reserves.
The proposed share offering follows Emaar Properties raising $1.3 billion from the IPO of its unit in Dubai earlier this month. Adnoc may seek a valuation of $10 billion to $14 billion for the distribution unit, people familiar with the matter said earlier this month.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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