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ABU DHABI / Reuters
The distribution unit of Abu Dhabi National Oil Co (ADNOC) could command a valuation of between $11 billion and $14 billion, according to fund managers who have seen research reports on the firm before an initial public offer of its shares.
The research notes were prepared by analysts at banks which are advising ADNOC on the planned listing of at least 10 percent of its fuel distribution unit in Abu Dhabi, sources said.
One source said a listing of 15 percent or more was possible.
“As we disclosed last week, we plan to float at least 10 percent of ADNOC Distribution next month. More information regarding the full offering will follow in due course,†an ADNOC spokesman told Reuters in
response to a question about
the valuation.
Abu Dhabi’s national oil company has unveiled details of ADNOC Distribution’s listing, as Gulf states step up plans to privatise energy assets in an era of cheap oil. “One analyst put the valuation at between $10 billion and $13 billion,†one fund manager said; other sources said different analysts had higher estimates of the company’s value.
The ADNOC unit’s flotation comes as Saudi Arabia plans
to list 5 percent of its national
oil company Aramco by the
end of next year, which Saudi officials say could raise $100 billion, making it the world’s biggest IPO.
Citigroup, First Abu Dhabi Bank, HSBC and Bank of America Merrill Lynch are joint global coordinators for the ADNOC unit’s offer and also bookrunners alongside EFG Hermes, Goldman Sachs and Morgan Stanley.