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Bloomberg
Abu Dhabi National Oil Co. (ADNOC) is planning an initial public offering of its service stations unit and may seek a value of as much as $14 billion, according to people familiar with the matter.
The company, may appoint investment banks for the share sale, likely to be on the Abu Dhabi stock exchange, as early as this week, the people said, asking not to be identified as the information is private. The unit may ultimately fetch a value of about $10 billion and raise up to $3 billion from a listing, another person said. No final decisions have been made, and Adnoc may also decide not to pursue an IPO, they said.
ADNOC, which produces most of the crude in the UAE, said earlier this week that it may sell minority stakes in some of its service units and will seek international partners to boost growth and expand operations.
In line with this week’s announcement “Adnoc is considering the IPO of minority stakes of some of its services businesses, and we will update the market on its plans in due course,†the company said.
IPOs in the region may be headed for a revival as countries work to make themselves less dependent on oil. Emirates Global Aluminium, the largest aluminum producer in the Middle East, has selected advisers for an initial public offering that could raise about $3 billion.
Companies in the UAE have raised about $590 million from four IPOs this year, making it the busiest year for listings in the region since 2014, according to reports.