Abu Dhabi – Mubasher: Abu Dhabi National Oil Company (ADNOC) plans to launch part of its distribution unit shares via an initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX) starting from 26 November.
The Abu Dhabi-based company will offer 1.25 billion to 2.5 billion shares of its fuel-station business at a par value of AED 0.08 per share, ADNOC highlighted in a statement.
This nominal value represents 10% to 20% of ADNOC distribution’s total issued shares, the state-owned crude producer indicated.
The sale will start from 26 November 2017 until 6 December 2017 for individual investors.
Tranches of subscription
The first tranche of the IPO, which represents 5% of the offer shares, will be open for natural persons, including qualified high net worth individual subscribers, and other subscribers who do not participate in the second tranche and hold an investor number with the ADX and have a bank account in the UAE.
The second tranche of the offering, which represents 95% of the offer shares, will be open for juridical persons capable of making investments on their own.
Minimum investment
“The minimum subscription in offer shares pursuant to the first tranche has been set at AED 10,000 with any additional investment to be made in AED 1,000 increments,” the company highlighted.
“The minimum subscription in offer shares pursuant to the second tranche has been set at AED 5 million,” the company added, pointing out that maximum subscription in offer shares has not been set.
“The Founder may not subscribe for offer shares, whether directly or indirectly, or through its subsidiaries,” ADNOC noted.
Post-completion of the IPO
The shares held by the founder following completion of the IPO shall subject to a lock-up that starts on the date of the shares listing on the ADX and ends 180 days thereafter.
The founder will not be allowed to sell or transfer any of its shares during the lock-up period unless in some limited circumstances.
Nationals of the UAE must maintain owning at least 51% of the shares to ensure that the ADNOC continues to be in compliance with the UAE ownership requirements.
