Abu Dhabi – Mubasher: The Abu Dhabi National Oil Company (ADNOC) intends to sell around 375 million shares, equivalent to 3% of its registered share capital in Abu Dhabi National Oil Company for Distribution (ADNOC Distribution), through an accelerated bookbuild offering.

ADNOC, the holder of 80% of the common shares in ADNOC Distribution, will offer the shares at a price of AED 4.36 per each to certain eligible institutional investors, according to a bourse filing on Wednesday.

At the same time, the company proposes to issue around $1.195 billion senior unsecured bonds due 2024, which are exchangeable into existing common shares of ADNOC Distribution accounting for around 7% of the company’s registered share capital.

The exchangeable bond offering will be issued at an issue price of 100% with a coupon of 0.70% per annum, payable semi-annually in arrears in June and December each year.

The share offering and the exchangeable bond offering represent a combined offering by ADNOC of around 10% of its registered share capital in ADNOC Distribution.

The combined offering will not be available to the public in the UAE or any other jurisdiction.

The blended price of the combined offering of AED 4.82 is approximately 5% above the three-month volume-weighted average share price of ADNOC Distribution, with a total transaction size of approximately $1.640 billion.

The UAE Minister of Industry and Advanced Technology and Managing Director and ADNOC Group CEO of ADNOC, Sultan Ahmed Al Jaber, commented: "Today’s announcement follows the placement of 10% of the outstanding share capital in September 2020 and represents the first combined equity and exchangeable bond offering in the GCC."

Al Jaber added: "Assuming all the Exchangeable Bonds are exchanged and settled in shares, the transaction will increase the free float in ADNOC Distribution to 30%, with ADNOC retaining a 70% strategic stake in the company, as we continue to see significant growth potential."