ADNOC planning $14bn float of UAE gas stations as Gulf states diversify

Abu Dhabi’s state-owned oil company ADNOC is planning to float a stake in its retail distribution arm, it announced this week,  in an an initial public offering that could value  its UAE-wide network of 300 service stations and convenience stores at  as much as $14bn. It is expected to appoint investment banks to help with the placement of the shares on the Abu Dhabi stock exchange as early as this week. Adnoc is also seeking to expand its energy trading operations as part of the new plan,  its head of  marketing, sales and trading directorate, Abdulla Salem Al Dhaheri, told a press conference in Istanbul on Monday.
The announcement comes after Riyadh’s confirmation in May that it is planning the part privatisation of Saudi Aramco and is the latest effort by an oil-rich Gulf state to diversify its economy. Emirates Global Aluminium – the largest aluminium producer in the Middle East, – has also  selected advisers for an initial public offering that could raise about $3bn. All in all, companies in the UAE have raised about $590m from four IPOs this year, making it the busiest year for listings in the region since 2014, according to Bloomberg 

Source: Bloomberg