ABU DHABI: Abu Dhabi National Oil Co’s (ADNOC) unit set an indicative price range for its initial public offering (IPO) that could raise as much as $2 billion to become the biggest listing in the UAE since 2007.
ADNOC Distribution set an indicative price range of between Dh2.35 dirham (SR2.40) and Dh2.95, it said in a statement on Sunday.
ADNOC is selling a minimum of 10 percent, or 1.25 billion shares, and a maximum of 20 percent, or 2.5 billion shares, in the IPO of its unit.
At the top of the price range, the deal could be valued at Dh7.375 billion, assuming it sells a maximum 20 percent.
That would make it the biggest IPO in the UAE since 2007 when DP World raised nearly $5 billion, according to Thomson Reuters data.
The planned listing comes as Abu Dhabi is pushing its state companies to float on the bourse, hoping to lure foreign investors with privatizations after a fall in oil prices since mid-2014 depleted its coffers.
The unit’s total market value could be between $8 billion and $10 billion.
Analysts had earlier valued the total fuel distribution unit at between $11 billion and $14 billion in reports prepared by banks advising the firm on the planned listing, sources had told Reuters earlier.
The company valuation implies a 2018 dividend yield of 6 percent to 7.5 percent and a 2019 dividend yield of 4 percent to 5 percent.
ADNOC’s CEO Sultan Al-Jaber said in the statement that the IPO’s price range was compelling and it was an attractive dividend prospect. Investors are getting a unique opportunity to invest in the UAE’s number one fuel retail brand, he said.
Under his leadership, ADNOC has embarked on a major shake-up plan to privatize its services businesses, venture into oil trading and expand partnerships with strategic investors.
ADNOC Distribution is the leading fuel distributor in the UAE, with a market share of around 67 percent in the country by number of retail fuel service stations.
Abu Dhabi’s national oil company earlier this month unveiled details of ADNOC Distribution’s listing, as Gulf states step up plans to privatize energy assets in an era of cheap oil.
Saudi Arabia plans to list 5 percent of 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 bookrunners alongside EFG Hermes, Goldman Sachs and Morgan Stanley. Rothschild is the sole financial adviser.
ADNOC’s distribution unit sets price range for Abu Dhabi initial public offering
ADNOC’s distribution unit sets price range for Abu Dhabi initial public offering
Saudi industry minister meets foreign officials ahead of Future Minerals Forum 2026
RIYADH: Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef held a series of bilateral meetings at the department’s headquarters with ministers from several countries participating in the Future Minerals Forum 2026.
The meetings were also attended by the Deputy Minister for Mining Affairs Khalid Al-Mudaifer.
During his meeting with the Brazilian Minister of Mining and Energy Alexandre Silveira, Alkhorayef discussed ways to enhance cooperation between the two countries in the mining and minerals sector as well as highlighted the most prominent opportunities available for developing joint mining investments.
In a meeting with Pakistan’s Minister of Petroleum Ali Pervaiz Malik, he discussed expanding the horizons of strategic partnership in the mining sector between the Kingdom and Pakistan, particularly in the field of mineral industries related to enhancing food security.
The minister also met with Nigeria’s Minister of Solid Minerals Development Dele Alake as they discussed joint opportunities to develop cooperation and exchange technical expertise in the mining and manufacturing sectors, emphasizing the African country’s pivotal economic role in West Africa.
Alkhorayef also held talks with the Minister of Mines of the Democratic Republic of the Congo Louis Watum Kabamba to explore joint investment opportunities in the mining sector and ways to enable the private sector to capitalize on these opportunities, thereby strengthening supply chains for strategic minerals.
In a related development, the Saudi minister held a bilateral meeting with the World Health Organization Regional Director for the Eastern Mediterranean Hanan Balkhi during which they tackled cooperation between the Kingdom and the WHO in the manufacturing and supply chains of medicines and vaccines.
They also discussed ways to enhance global health security and solidifying the Kingdom’s position as a strategic partner of the WHO as well as a promising regional hub for the pharmaceutical industry.
Alkhorayef’s meetings with ministers preceded the fifth edition of the Future Minerals Forum, held from Jan. 13 to 15, in Riyadh.
The conference serves as a leading international platform for dialogue on the future of the global mining sector and for building effective partnerships between governments and the private sector, contributing to the growth and sustainability of the mining sector. It also reinforces Saudi Arabia’s position as a global hub for mining and minerals.
