ADNOC to sell at least 10% of fuel distribution business in IPO

ABU DHABI/DUBAI (Reuters) — Abu Dhabi National Oil Company (ADNOC) aims to sell at least 10% of its fuel distribution unit in an initial public offering in Abu Dhabi, as Gulf states step up plans to privatize energy assets in an era of cheap crude.

The listing details came as Saudi Arabia and Oman are also looking to privatize energy assets as low oil prices squeeze revenues.

Saudi Arabia plans to list 5% of its national oil company Aramco by next year, which Saudi officials say could raise $100 B, making it the world’s biggest IPO.

At the holding company level, ADNOC will continue to be owned by the Abu Dhabi government, said ADNOC CEO Sultan Ahmed al-Jaber at an energy conference.

“The IPO of ADNOC Distribution represents an important milestone in this new approach and is a natural evolution for the growth and expansion of this exciting retail-focused business,” al-Jaber said.

The ADNOC statement confirms a Reuters story in September that said the company could list more than 10% of its fuel retail business.

The transformation of ADNOC is also seen as part of an economic reform drive led by Abu Dhabi’s Crown Prince Sheikh Mohammed bin Zayed Al Nahyan.

ADNOC produces some 3 MMbbl of oil per day, or around 3% of global production. It also produces more than 9.8 Bcf of raw gas per day, placing it among the largest energy producers in the world.

ADNOC Distribution is the leading fuel distributor in the United Arab Emirates with an approximately 67% market share by number of retail fuel service stations, which stood at 360 by end of September.

Citigroup, First Abu Dhabi Bank, HSBC and Bank of Merrill Lynch are joint global coordinators for the offering and also bookrunners alongside EFG Hermes, Goldman Sachs and Morgan Stanley

Rothschild & Co is the financial adviser.

Reporting by Maha El Dahan, Rania El Gamal and Saeed Azhar

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