Abu Dhabi National Oil Company (ADNOC) has announced the successful completion of a placement to institutional investors of 1.25 billion shares in ADNOC Distribution amounting to 10% of ADNOC Distribution’s total share capital, according to a press release.

The 10% transaction, valued at $1 billion, will increase the company’s free float to 20%, meaning greater liquidity for ADNOC Distribution shares. 

ADNOC will own 80% of ADNOC Distribution’s registered share capital following the placement and believes that it will continue to deliver strong growth potential for the company. This is considered the largest block placement of a publicly listed GCC company to date.

ADNOC Distribution’s initial public offering (IPO) in 2017 aimed at increasing the stock’s free float and liquidity in addition to providing an attractive investment opportunity. The placement was priced at AED 2.95 per share, which is 18% above the IPO price of AED 2.50.

Ahmed Al Jaber, ADNOC Group CEO, said: “Since its initial public offering in 2017, ADNOC Distribution has continued to deliver on its growth ambitions, introduced a range of new customer-orientated services, and enhanced its progressive dividend policy. It has delivered solid business results and demonstrated to customers and investors its resilience and steadfast focus on safe, smart growth. We saw significant investor demand in ADNOC Distribution shares and quickly and efficiently responded through an institutional placement.”