The stake in Adnoc Distribution will be offered via an IPO on the Abu Dhabi Securities Exchange by the end of this year, revealed Dr Al Jaber, the CEO of Adnoc.

The IPO "will offer investors an unprecedented opportunity to invest alongside Adnoc in one of the region’s leading consumer brands," he added.

This is the first time Adnoc is undertaking a public listing for any of its group companies, said the Emirati firm in its statement. The share sale is expected to be one of the largest IPOs in the UAE market for a number of years. Following the IPO, Adnoc will retain the majority shareholding.

Adnoc confirmed key points about its fuel distribution business, such as its leading market share and strong position in the UAE’s fuel service station and distribution market besides its stable fuel retail margins, its pan-UAE network of convenience stores, and its strong, long term supply agreements with the Adnoc Group.

Post IPO, it is expected that the unit would still continue to enjoy strong support from the Adnoc Group.

Adnoc Distribution is currently in the process of finalising all regulatory approvals required for the IPO, including those from the UAE Securities and Commodities Authority and the ADX, said the statement from the company.

The public offer represents an important step forward in Adnoc’s ongoing transformation, and follows on from a group-wide value creation initiative launched by Dr Al Jaber earlier this year.

In July, Adnoc announced that it would be taking a more proactive approach to managing its business assets and capital, to unlock value, drive business and revenue growth, optimise performance, and secure greater access for Adnoc products in new growth markets.-TradeArabia News Service