ADNOC Pushes Ahead With IPO After Emaar Sale
(Bloomberg) -- Abu Dhabi National Oil Co. plans to sell as much as 20 percent of its fuel-distribution unit weeks after Saudi Arabia’s corruption crackdown deterred investors from the Middle East’s biggest share sale of the year.
The crude producer will offer 1.25 billion to 2.5 billion shares of Abu Dhabi National Oil Co. for Distribution PJSC, according to an advertisement on Monday. The pricing range for the book-build initial public offering will be announced on Nov. 26 and the shares will start trading in Abu Dhabi on Dec. 13.
The IPO is among several expected in the Middle East, including that of Saudi Aramco, as oil-rich Gulf governments sell assets to raise cash to diversify after crude prices slumped. The Adnoc sale is set to come after Emaar Properties PJSC scrambled to complete a $1.3 billion offering last week as local investors reneged on investment plans following the Saudi crackdown, according to people familiar with the matter.
“We should see very good demand for this IPO, as the company is closely correlated to the energy industry and you don’t have the chance of buying such a share in the region that easily,” said Issam Kassabieh, equities analyst at Menacorp Financial Services in Dubai. "It is a good play and different than Emaar Development, from the real estate market, that has several names traded already.’’
Valuation
Adnoc may seek a valuation of $10 billion to $14 billion for the unit, people familiar with the matter said in July. The unit posted earnings before interest, tax, depreciation and amortization of 2.1 billion dirhams ($573 million) last year.
Adnoc will try to sell stakes in some units and seek partners for others, Chief Executive Officer Sultan Al Jaber said in an interview last week. The company, which raised $3 billion in bonds last month, is putting chunks of separate operating units up for sale instead of selling a piece of the parent company, as Saud Arabia is planning with Aramco.
"We are looking for ways to maximize value to our shareholders while keeping Adnoc wholly-owned by the Abu Dhabi government," Al Jaber said. Adnoc could seek a cornerstone investor for the IPO, he said.
Adnoc pumps most of the crude in the U.A.E., a member of the Organization of Petroleum Exporting Countries with about 6 percent of global reserves. The company allows foreign firms to join in partnerships that give them a stake in the emirate’s oil.
To contact the reporters on this story: Filipe Pacheco in Dubai at fpacheco4@bloomberg.net; Anthony DiPaola in Dubai at adipaola@bloomberg.net. To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net Stefania Bianchi, Shaji Mathew.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension