Dubai: ADNOC Distribution, the UAE’s largest fuel and convenience retailer, which is listed on the Abu Dhabi Securities Exchange (ADX), announced that it will be included in the FTSE Emerging Markets (EM) Index, from September 16. Inclusion is subject to final confirmation by FTSE on September 6.
ADNOC Distribution was included in the FTSE EM Index by FTSE Russell after meeting the necessary requirements and will now be part of this widely tracked index. The inclusion is expected to increase the attractiveness of ADNOC Distribution’s shares to potential international investors and further diversify the company’s overall investor base.
Following the inclusion of ADNOC Distribution in the MSCI EM Index in May, the FTSE EM Index marks another important milestone in ADNOC Distribution’s successful equity story. This will continue to enhance the company’s investment appeal and visibility among global investors, attracting more foreign inflows into ADNOC Distribution shares
In September 2020, ADNOC successfully completed a private placement of 1.25 billion of ADNOC Distribution shares (valued at $1 billion) to institutional investors, increasing the company’s free-floating equity to 20 per cent. In May 2021, ADNOC placed an additional 3 per cent of ADNOC Distribution’s share capital (valued at $445 million), increasing free float further to 23 per cent.
It also issued approximately $1.195 billion of senior unsecured bonds (the Exchangeable Bonds) due 2024, exchangeable into existing shares of ADNOC Distribution, constituting approximately 7 per cent of the registered share capital of ADNOC Distribution under certain conditions.
ADNOC will retain at least a 70 per cent strategic stake.