Abu Dhabi National Oil for Distribution: ADNOC DISTRIBUTION INCLUDED IN THE FTSE EMERGING MARKETS INDEX
ADNOC Distribution (ISIN: AEA006101017) (Symbol: ADNOCDIST), the UAE’s largest fuel and convenience retailer, listed on the Abu Dhabi Securities Exchange (ADX), today announced that it will be included in the FTSE Emerging Markets (EM) Index, from September 16, 2021 (office close). Inclusion is subject to final confirmation by FTSE on September 6.
ADNOC Distribution has been included in the FTSE EM Index by FTSE Russell after meeting the necessary requirements and will now be part of this widely followed index, a must-have for global institutional investors. The inclusion is expected to increase the attractiveness of ADNOC Distribution’s shares to potential international investors and further diversify the company’s overall investor base.
Ing. Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “Following the inclusion of ADNOC Distribution in the MSCI EM Index in May 2021, the FTSE The EM index marks another milestone in the successful history of ADNOC Distribution’s shares. This will continue to improve the investment attractiveness and visibility of the company with global investors, attracting more foreign contributions into ADNOC Distribution’s shares.
“The inclusion is a testament to the company’s history of growth and its strong position in the fuel retail industry. Our continued goal is to provide customers with modern fuel retail convenience, execute our ambitious strategy, and create long-term shareholder value throughout the next phase of our expansion, ”said he added:
In September 2020, Abu Dhabi National Oil Company (ADNOC) successfully completed a private placement of 1.25 billion ADNOC Distribution shares (valued at USD 1 billion) with institutional investors, thus bringing the floating equity of the Company at 20%. In May 2021, ADNOC placed an additional 3% of ADNOC Distribution’s share capital (valued at USD 445 million), further increasing the free float to 23%. It also issued approximately $ 1.195 billion of senior unsecured bonds (the “Exchangeable Bonds”) maturing in 2024, exchangeable into existing shares of ADNOC Distribution, constituting approximately 7% of the share capital of ADNOC Distribution under certain conditions. Following the transactions, ADNOC will retain a strategic stake of at least 70% in the company as it continues to see significant growth potential in ADNOC Distribution
These equity investments benefited from strong investor demand for ADNOC Distribution shares, driven by its attractive value proposition. These transactions have also diversified the shareholder base of the company and allowed greater liquidity of its shares on the Abu Dhabi Stock Exchange.