Adnoc Distribution’s 10 per cent initial public offering has been priced at Dh2.5 per share, coming in middle of the range of what was expected and valuing the company at Dh31.1 billion, according to its parent Adnoc.
Investors and analysts said the sale was well priced for a business that has room to grow both at home and abroad and individuals showed strong demand for the issue. Adnoc Distribution plans to open its first petrol stations in Dubai and Saudi Arabia next year. The company will be listed on the Abu Dhabi stock exchange.
“The price at Dh2.5 is attractive for retail investors who want to hold the stock and the company committed to paying a high percentage of its earnings as a dividend,” said an industry executive who did not want to be identified.
“The company has also guaranteed a minimum margin for the next five years, meaning that the business will not be negatively impacted by fluctuating oil prices.”
The energy company had earlier reduced the price range to Dh2.35 to Dh2.65 for the shares of Adnoc Distribution, according to terms seen by Bloomberg. The initial price range was Dh2.35 to Dh2.95 and the company had planned to sell as much as 20 per cent.
The offering is covered throughout the revised price range, according to the document. The subscription period for UAE investors closed on Wednesday and, for the institutional tranche, yesterday.
Adnoc Distribution currently operates 360 service stations and 235 Oasis convenience stores across the UAE except for Dubai and has a monopoly in Sharjah and Abu Dhabi. Enoc and Emarat are the only operators in Dubai.
Through a franchise model with an identified local partner – as yet unnamed – Adnoc Distribution also expects to begin operating in Saudi Arabia next year.
“We believe we enjoy widespread and favourable name recognition outside of our existing areas of operation, including in Dubai, Saudi Arabia and elsewhere in the [Arabian] Gulf region, which we believe will support expansion,” the company said in its prospectus.
IPO activity in the UAE is picking up after only two deals were completed throughout 2015 and 2016. Emaar Properties raised US$1.3 billion from the sale of shares in its development unit last month, while Mubadala Investment expects to IPO its Emirates Global Aluminium unit next year.
__________
Adnoc IPO of distribution unit set to raise up to Dh3.3bn
Adnoc to invest Dh400bn as it eyes downstream expansion
_________
The energy company had earlier reduced the price range to Dh2.35 to Dh2.65 for the shares of Adnoc Distribution, according to terms seen by Bloomberg. The initial price range was Dh2.35 to Dh2.95 and the company had planned to sell as much as 20 per cent. The offering is covered throughout the revised price range, according to the document. The subscription period for UAE investors closed on Wednesday and, for the institutional tranche on Thursday.
Adnoc Distribution currently operates 360 service stations and 235 Oasis convenience stores across the UAE except for Dubai and has a monopoly in Sharjah and Abu Dhabi. Enoc and Emarat are the only operators in Dubai.
Through a franchise model with an identified local partner – as yet unnamed – Adnoc Distribution also expects to begin operating in Saudi Arabia next year.
“We believe we enjoy widespread and favourable name recognition outside of our existing areas of operation, including in Dubai, Saudi Arabia and elsewhere in the [Arabian] Gulf region, which we believe will support expansion,” the company said.
IPO activity in the UAE is picking up after only two deals were completed throughout 2015 and 2016. Emaar Properties raised US$1.3bn from the sale of shares in its development unit last month, while Mubadala Investment expects to IPO its Emirates Global Aluminium unit next year.
Sour%20Grapes
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RESULT
Bayer Leverkusen 2 Bayern Munich 4
Leverkusen: Alario (9'), Wirtz (89')
Bayern: Coman (27'), Goretzka (42'), Gnabry (45'), Lewandowski (66')
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
Company%C2%A0profile
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UAE currency: the story behind the money in your pockets
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
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Global state-owned investor ranking by size
1.
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United States
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2.
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China
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3.
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UAE
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4.
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Japan
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5
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Norway
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6.
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Canada
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7.
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Singapore
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8.
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Australia
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Saudi Arabia
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10.
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South Korea
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UAE currency: the story behind the money in your pockets
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
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