UAE’s ADNOC plans IPO of retail unit at $14 bln value: report

Abu Dhabi National Oil Co. (ADNOC) is planning to publicly list its service stations unit, ADNOC Distribution, and may seek a value of as much as $14 billion, Bloomberg reported on Wednesday, citing sources familiar with the matter.

The initial public offering (IPO) will likely be on the Abu Dhabi Securities Exchange (ADX); however, no final decisions have been made yet, and ADNOC may decide not to list the unit, the people said.

ADNOC Distribution may ultimately be valued at about $10 billion and raise up to $3 billion from the IPO, the sources said, adding that the oil company could appoint investment banks to advise on the offering as early as this week.

Goldman Sachs, First Abu Dhabi Bank, HSBC, and JPMorgan are vying for lead roles in the listing, Reuters reported, citing unnamed sources. Rothschild is also in a strong position for an advisory role in the deal.

Earlier this week, ADNOC said it plans to float minority stakes in some of its service businesses on local equity markets as it seeks to broaden its investor base and raise capital.

An IPO of the oil major at the group holding level will not be on the table, ADNOC group CEO Sultan Al Jaber said, adding that the company will remain fully owned by the Abu Dhabi government.

ADNOC will also continue to be a majority shareholder in any businesses that are listed.

The Abu Dhabi company’s service station arm, ADNOC Distribution, operates over 300 stations across the United Arab Emirates, as well as a network of convenience stores and auto products.