Abu Dhabi National Oil Company offered 1.25 billion shares in ADNOC Distribution on the Abu Dhabi Securities Exchange for the price of 2.5 AED today, Zawya reports.
The shares represent a 10% stake in the company and sold for approximately $851 million, resulting in a market capitalization for the company of $8.5 billion, according to the news agency.
The offering was oversubscribed and the stock opened at 2.9 AED today before settling lower at 2.77 AED, the news agency reports.
ADNOC Distribution is the gas retail subsidiary of ADNOC and operates service stations in the UAE. It plans to expand its operations further in the UAE and, potentially, into Saudi Arabia, Zawya reports.
ADNOC is looking to revamp its business model to make the itself more responsive to international market conditions.