Abu Dhabi National Oil Company (ADNOC) officially announced the partial initial public offering (IPO) of its retail division, Bloomberg reports.
The company plans to offer at least 10% of ADNOC Distribution on the Abu Dhabi Securities Exchange next month, according to ABC News.
“What we’re trying to achieve here are numbers that would show an unprecedented commitment from the international market as well as other local investors to work alongside ADNOC in one of its very important subsidiary companies,” Al Jaber stated, according to Bloomberg.
The listing is pending regulatory approval, according to Gulf News.
The announcement was widely anticipated and had been previously reported on by Reuters.
ADNOC Distribution owns over 500 service stations and convenience stores in the UAE, Gulf News reports. It also sells fuel to commercial, industrial, and governmental customers.
The company recorded earnings of $573 million last year, Bloomberg reports. It has indicated, however, that it will pay out $400 million in dividends annually for the next two years. It has also promised a one-time $200 million payout to investors next spring.
The IPO is part of a larger effort by ADNOC to revamp its capital structure. Another subsidiary, the Abu Dhabi Crude Oil Pipeline (ADCOP), recently raised $3 billion from a bond offering as part of the new strategy, Reuters previously reported.
ADNOC is the state-owned oil company of Abu Dhabi.