ADNOC Distribution may sell another 10% stake: report

Abu Dhabi National Oil Company (ADNOC) is considering selling another 10 percent stake in its fuel distribution business, which listed in an initial public offering (IPO) last year, Reuters reported, citing three sources familiar with the matter.

The timing of the sale, however, is not fixed yet.

The oil firm’s distribution unit, ADNOC Distribution, listed 10 percent of its share capital on Abu Dhabi Securities Exchange in December last year.

The sale of another 10 percent would help ADNOC in its aim of joining the MSCI Emerging Markets Index and attract more international investors, two of the sources said.

ADNOC Distribution is seeking a minimum free float of 15 percent to improve its chances of joining the index, one of the sources said.

The potential sale was discussed with investors during recent international non-deal roadshows, the three sources said.

If the company received sufficient foreign investor interest, it would consider listing this year, the sources said.

Before its IPO last year, ADNOC had said it might sell as much as 20 percent in the fuel distribution unit.