ADNOC to offer minority stake in ADNOC Distribution

The CEO of the Abu Dhabi National Oil Company, ADNOC, Dr. Sultan Al Jaber, announced today that ADNOC intends to sell a minority stake of its fuel distribution and convenience retail store subsidiary, ADNOC Distribution, via an IPO on the Abu Dhabi Securities Exchange (ADX) before the end of the year. The proposed IPO is subject to the finalisation of all regulatory approvals, including those of the UAE Securities and Commodities Authority and the ADX.

ADNOC Distribution is the UAE’s largest operator of fuel stations and convenience stores. The company owns and operates a pan-UAE network of 360 fuel service stations, including car washes and other car inspection services, as well as 235 Oasis-branded convenience stores, making it the largest operator of a retail network in the UAE. The company is also the leading marketer and distributor of fuels to commercial, industrial and government customers throughout the UAE.

Delivering his remarks during the keynote speech at ADIPEC, the world’s leading annual conference for oil and gas professionals, Dr. Al Jaber announced ADNOC’s intention to issue an IPO for a minority stake of ADNOC Distribution. The CEO said that the IPO "will offer both UAE and international investors an unprecedented opportunity to invest alongside ADNOC in one of the region’s leading consumer brands."

ADNOC confirmed key points about the ADNOC Distribution business, such as its leading market share and strong position in the UAE’s fuel service station and distribution market, its stable fuel retail margins, its pan-UAE network of convenience stores, and its strong, long term supply agreements with the ADNOC Group. The IPO is expected to support ADNOC Distribution in the acceleration and execution of its new growth strategy. Dr. Al Jaber also said the IPO would help support the growth and development of the UAE’s capital markets.

Post IPO, it is expected that ADNOC Distribution would continue to enjoy strong support from the ADNOC Group. The company stated that ADNOC Distribution is currently in the process of finalising all regulatory approvals required for the IPO, including those approvals from the UAE Securities and Commodities Authority and the ADX.

The company is planning to offer a minority stake of its shares in the planned IPO, with ADNOC continuing to retain the majority shareholding. The IPO is the first time ADNOC has undertaken a public listing of any of its group companies. The share sale is expected to be one of the largest IPOs in the UAE market for a number of years.

The IPO of ADNOC Distribution represents a further, important step forward in ADNOC’s ongoing transformation, and follows on from a group-wide value creation initiative launched by Dr. Al Jaber earlier this year. In July, ADNOC announced that it would be taking a more proactive approach to managing its business assets and capital, to unlock value, drive business and revenue growth, optimise performance, and secure greater access for ADNOC products in new growth markets.

ADNOC is one of the world’s leading oil and gas companies and the 12th largest oil producer globally, with production of approximately 3 million barrels per day. ADNOC manages 95 percent of the UAE’s proven oil reserves and 92 percent of the country’s gas reserves.