DUBAI/ABU DHABI: Abu Dhabi National Oil Co. (ADNOC) said on Monday it may sell as much as a 20 percent stake in its fuel distribution unit, potentially raising up to $2.8 billion.
Analysts have valued the total fuel distribution unit at between $11 and $14 billion in research reports prepared by banks advising the firm on the planned listing, sources have told Reuters.
Abu Dhabi is pushing its state companies to list on the bourse, hoping to lure foreign investors with privatizations after lower energy prices depleted its coffers.
The companies are aiming to complete some of their listings before Saudi Arabia’s IPO of its crown jewel Saudi Aramco in late 2018, as part of a wider multi-billion dollar privatization program, bankers say.
State fund Mubadala Investment Co. said last month it expects to list its unit Emirates Global Aluminium (EGA), one of the world’s biggest aluminum producers, next year.
ADNOC is offering a minimum 10 percent stake, or 1.25 billion shares, and a maximum 20 percent stake, or 2.5 billion shares, in the IPO of ADNOC Distribution, it said in a filing.
A larger float may help ADNOC’s distribution unit become part of the MSCI emerging market index, attracting more foreign fund flows, said one source familiar with the matter.
Abu Dhabi’s national oil company last week unveiled details of ADNOC Distribution’s listing, as Gulf states step up plans to privatise energy assets in an era of cheap oil.
The ADNOC unit’s float comes as Saudi Arabia plans to list 5 percent of its national oil company Aramco by the end of next year, which Saudi officials say could raise $100 billion, making it the world’s biggest IPO.
Citigroup, First Abu Dhabi Bank, HSBC and Bank of America Merrill Lynch are joint global coordinators for the ADNOC unit’s offer and also bookrunners alongside EFG Hermes, Goldman Sachs and Morgan Stanley.
ADNOC may offer 20% stake, raise up to $2.8 billion
ADNOC may offer 20% stake, raise up to $2.8 billion
Closing Bell: Saudi main index climbs to 10,485
RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Sunday, gaining 34.32 points, or 0.33 percent, to close at 10,484.59.
The total trading turnover of the benchmark index stood at SR2.59 billion ($690 million), with 168 listed stocks advancing and 87 declining.
The Kingdom’s parallel market Nomu also gained 100.37 points to close at 23,454.65.
The MSCI Tadawul Index advanced by 0.13 points to 1,377.44.
The best-performing stock on the main market was Nama Chemicals Co., whose share price increased by 9.98 percent to SR22.38.
The share price of Al Masar Al Shamil Education Co. rose by 9.15 percent to SR23.85.
Saudi Paper Manufacturing Co. also saw its stock price climb by 8.42 percent to SR57.95.
Conversely, the share price of Canadian Medical Center Co. dropped by 6.37 percent to SR6.03.
The stock price of Kingdom Holding Co. also declined by 3.16 percent to SR8.28.
In the parallel market, Alfakhera for Mens Tailoring Co. was the top performer, with its share price advancing by 16.40 percent to SR8.80.
On the announcements front, Theeb Rent a Car Co. said it had signed a long-term vehicle leasing services contract valued at SR110.4 million with Hungerstation Co.
Under the deal, Theeb will lease 2,000 vehicles to HungerStation for a period of four years starting from 2026, according to a Tadawul statement.
The statement added that the vehicles will be delivered in batches within the first six months from the contract start date, taking into consideration global logistical circumstances and procedures beyond the control of both the agents and the company.
The contract is expected to have a positive impact on the company’s financials from the first quarter of 2026.
The share price of Theeb Rent a Car Co. declined by 0.79 percent to SR37.80.
