An Adnoc petrol station operated by Adnoc Distribution. The planned IPO would underpin Adnoc’s integrated 2030 strategy focused on unlocking the full potential of its value chain. Image Credit: Adnoc

Abu Dhabi: Dr Sultan Ahmad Al Jaber, UAE Minister of State and Group CEO of Abu Dhabi National Oil Company (Adnoc) confirmed plans to list a minority stake in the company’s subsidiary Adnoc Distribution on Abu Dhabi Securities Exchange.

Delivering the opening keynote address at Abu Dhabi International Petroleum Exhibition and Conference, Al Jaber said the decision to launch the IPO is a historic moment and the first time it has placed shares, of one of its subsidiary companies, onto the public markets.

“The planned IPO, to be listed on the Abu Dhabi Securities Exchange, will offer both UAE and international investors an unprecedented opportunity to invest alongside Adnoc in one of the region’s leading retail brands,” he said.

“This marks a major milestone in our history and a significant step-change in our transformation. Importantly, it also signals a new chapter in the growth and development of the UAE’s capital markets.”

Adnoc will continue to remain wholly owned by Abu Dhabi government, he added.

Coupled with Adnoc’s new approach to partnership and active portfolio management, he said, the planned IPO would underpin Adnoc’s integrated 2030 strategy that is focused on unlocking the full potential of its entire value chain to deliver a more profitable upstream; a more valuable downstream and an economic, sustainable gas supply.

The planned IPO of Adnoc Distribution will be subject to the finalising of all regulatory approvals, including those approvals from the UAE Securities and Commodities Authority, and the ADX.

Adnoc is planning to sell at least 10 per cent of the fuel distribution company in IPO, Reuters reported on Monday.

Adnoc Distribution is the UAE’s largest fuel distributor and convenience store operator.

The company owns and operates a pan-UAE network of 360 fuel service stations, including car washes and other car inspection services, as well as 235 Oasis-branded convenience stores, making it the largest operator of a retail network in the UAE.

The company is also the leading marketer and distributor of fuels to commercial, industrial and government customers throughout the UAE.

Adnoc produces about 3 million barrels of oil and 9.8 billion cubic feet of raw gas a day. Its integrated upstream, midstream and downstream activities are carried out by 16 specialist subsidiary and joint venture companies.

The company’s $3 billion (Dh11 billion) bond issue was oversubscribed three and a half times, indicating massive demand from both international and regional investors.

It also recently launched a unified brand identity across its group of companies bringing together its subsidiary companies under one common identity to highlight the scale of its business.

The company is in advanced discussions with more than a dozen potential partners in awarding an offshore oil concession, currently operated by the Abu Dhabi Marine Operating Company (Adma-Opco), that expires next March.