ADNOC's stock flotation may happen ahead of Aramco's IPO: Report
Word in the market suggests UAE oil giant ADNOC may list its distribution business in just the Abu Dhabi Securities Exchange (ADX) in Q4 2017, as opposed to Aramco's plan of launching the IPO in 2018 in a local as well as foreign capital markets
The Abu Dhabi National Oil Company (ADNOC) could float it’s services business well ahead of Saudi oil giant Aramco's bid for a public listing, according to a report by IBTimes UK.
The planned initial public offering (IPO) would be of ADNOC's distribution business, it is rumoured, which manages 460 petrol stations and accompanying convenience stores across the United Arab Emirates.
While the company has confirmed plans for an IPO, a source at the 22nd World Petroleum Congress in Istanbul told IBTimes UK that the listing could arrive as early as the fourth quarter of 2017, with ADNOC hoping for a $14bn valuation for the listed entity.
It is understood that the Emirati energy major is choosing to only list on the Abu Dhabi Securities Exchange (ADX), rather than seek a dual-listing with a secondary flotation overseas. The partial stock listing of between 10-15% of headline valuation could raise as much as $2bn for ADNOC.
A spokesperson for the company confirmed plans for an IPO of its distribution business, but declined to be drawn into the subject of the expected valuation or the timing of the listing noting only that the "market would be updated in due course."
Meanwhile, newswire Reuters reported that up to ten major banks are in the running for leading advisory roles related to the IPO. These include HSBC, Goldman Sachs, JPMorgan and First Abu Dhabi Bank.
Separately, Abu Dhabi-based The National newspaper has reported that the company is also seeking to partner with "large trading houses, international pension funds, private equity investors and global infrastructure specialists, rather than just national and international oil companies."
Should the listing take place before the end of this year, ADNOC would end up taking its asset much earlier than Saudi Aramco, which is planning its own IPO via a domestic listing and secondary international listings.
However, in Aramco's case, a partial 5-10% offering of the whole company would be in play, prompting some analysts to estimate the state-owned oil and gas behemoth’s value at over a whopping $1tn.
ADNOC has clarified, however, that there will be no stock listing of the group holding company and that the Abu Dhabi government will continue to fully retain possession of its most-prized asset. Moreover, ADNOC will also remain the majority shareholder in any business whose shares would be floated.