ADNOC Distribution, the retail unit of Abu Dhabi National Oil Company was officially listed on Abu Dhabi Securities Exchange (ADX) on Wednesday, and the opening price of the stock was Dh2.90.
ADNOC CEO Dr. Sultan al Jaber rang the bell to mark the trading of the stock. ADNOC Distribution raised Dh3.1 billion from the sale of 1.25 billion shares, which were priced at 2.50 dirhams each, through an Initial Public Offering (IPO) that closed last week.
About 90 percent of the shares were bought by qualified investors while close to 10 percent were sold to individuals.
State-owned energy giant ADNOC said its offering is the largest on the Abu Dhabi stock exchange (ADX) in over 10 years.
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,” Jaber said.
ADNOC has raised $851 million through the sale of 10 percent of its distribution unit. The company had initially planned to sell as much as a 20 percent stake, however, and had lowered the top end of its offer price.
The listing is part of a strategy by the UAE, as well as other Gulf nations, to privatize energy sector assets, particularly amid a lower oil price environment.
In addition, ADNOC has undergone a major restructuring program since Sultan Ahmed Al Jaber was appointed the company's chief executive in 2016.
Currently, the company says it operates across the hydrocarbon chain through a network of 18 businesses, from exploration to production, storage, refining and distribution.
It produces 3.1 million barrels of oil per day and 9.6 billion cubic feet of raw gas each day, placing it among the largest energy producers in the world. It wants to increase the number of barrels per oil it produces per day to 3.5 million in 2018.