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ADNOC (UAE) to Expand its Business in Dubai and Saudi Arabia

18 Dec 2017 - Adnoc Distribution, which made a strong debut listing on Wednesday in Abu Dhabi, plans to expand its business in Dubai and Saudi Arabia, its Deputy CEO said.

The company, which raised Dh3.1 billion through an initial public offering (IPO), will open at least two new facilities in Dubai next year. It also plans to enter Saudi Arabia by opening fuel stations and convenience stores.

“We have a great position in the UAE and we are looking to grow and move into Dubai in 2018. We are also looking into Saudi Arabia and will use franchise model and work with partners,” said John Carey. “We have a great convenience store network but we are going to transform that and enhance customer experience. We have great initiatives moving forward,” he added.

Speaking on the IPO, he said they are extremely satisfied as it was the largest IPO in Abu Dhabi in the last ten years. “This is been the largest IPO in Abu Dhabi in over ten years. It is for the first time we brought international investors in and we brought world class investors.”

Adnoc Distribution has 360 retail fuel stations in Abu Dhabi, Sharjah, Ajman, Fujairah, Ras Al Khaimah and Umm Al Quwain along with 235 convenience stores located across its retail fuel network.

It has an approximately 67 per cent market share by number of retail fuel service stations, and the largest market share in the wholesale segment.

“Transactions, such as this IPO, will allow Adnoc to better manage our capital and portfolio of assets, and expand our range of new and existing partnerships — from the Upstream to the Downstream,” said Adnoc CEO Dr Sultan Al Jaber.

“The IPO also supports the reinvigoration of the ADX, and will be a catalyst for further growth and development of the UAE capital markets.”

The IPO represents the first international offering on the ADX and was the first since 2011. It is also the largest IPO on Abu Dhabi bourse in the last 10 years.

Based on its market capitalisation at listing, Adnoc Distribution is expected to be the fourth largest company listed on the ADX and the only large, retail sector stock, helping to further diversify the exchange and increasing investor choice.

Adnoc Distribution was multiple times oversubscribed on the qualified investor tranche, and the retail tranche was oversubscribed 22 times on the original retail tranche size. To accommodate for the level of retail investor demand, the retail tranche was doubled in size.


GulfNews.com

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