ADNOC Distribution, the UAE’s largest fuel and convenience retailer, has announced that it will be included in the MSCI Emerging Markets Index from May 27.
Morgan Stanley Capital International (MSCI) has included the ADNOC unit after it met the necessary requirements and will now be among nine UAE listed companies to be part of the index which is most widely tracked by global institutional investors.
The inclusion is expected to increase the attractiveness of ADNOC Distribution’s shares to potential international investors, a statement said.
Ahmed Al Shamsi, acting CEO of ADNOC Distribution, said: “Being included on the MSCI Emerging Markets Index is an important milestone in ADNOC Distribution’s thriving equity narrative.
“The inclusion is a testament to the company’s ability to grow and a reflection of its solid performance and resilience since IPO. We remain focused on delivering strong and stable returns as we continue to grow our international investor base.”
In September 2020, ADNOC successfully completed a private placement of 1.25 billion of ADNOC Distribution shares valued at $1 billion to institutional investors, increasing the company’s free-floating equity to 20 percent.
This was the largest block placement of a publicly listed GCC company and leveraged on significant investor demand for ADNOC Distribution shares.
The transaction also diversified the company’s shareholder base and allowed for greater liquidity of its shares on the Abu Dhabi Securities Exchange, the statement added.
ADNOC Distribution operates 449 retail fuel stations and 332 convenience stores and is the only fuel retailer operating in all seven emirates in the UAE. In 2018, the company expanded its operations internationally, opening two service stations in Saudi Arabia.
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