Investor interest was strong Wednesday (December 13th) as Abu Dhabi's state energy company listed a stake in its retail distribution arm, the first time the emirate has sold shares in one of its oil firms, AFP reported.
The Abu Dhabi National Oil Company said it had raised $845 million by floating 10% of its subsidiary ADNOC Distribution, a landmark share offering as Gulf energy firms open up to outside investments.
The initial public offering (IPO) price for the shares was at 2.5 dirhams ($0.68) and they were soon trading at $0.73.
ADNOC said the IPO brought the subsidiary's market capitalisation to $8.5 billion, making it the fourth-largest firm on the Abu Dhabi Securities Exchange.
Abu Dhabi has never before offered public shares in one of its oil companies.
"We were extremely pleased with the demand for this landmark IPO. We received substantial interest from the international investment community, as well as an overwhelming response from investors in the UAE," ADNOC CEO Sultan al-Jaber said in a statement.
