Adnoc Distribution to be included in FTSE Emerging Markets Index

Dubai - The inclusion will further diversify the company’s investor base.



by

Waheed Abbas

Published: Sun 22 Aug 2021, 10:23 AM

Adnoc Distribution, the UAE’s largest fuel and convenience retailer listed on the Abu Dhabi Securities Exchange (ADX), will be included in the FTSE Emerging Markets (EM) Index from September 16, 2021.

The company said in a statement on Sunday that the inclusion is subject to final confirmation by FTSE on September 6.

Adnoc Distribution was included in the FTSE EM Index by FTSE Russell after meeting the requirements and will now be part of this widely tracked index, which is widely tracked by 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.

“Following the inclusion of Adnoc Distribution in the MSCI EM Index in May 2021, the FTSE EM Index marks another important milestone in Adnoc Distribution’s successful equity story. This will continue to enhance the company’s investment appeal and visibility among global investors, attracting more foreign inflows into Adnoc Distribution shares,” said Bader Saeed Al Lamki, CEO of Adnoc Distribution.

“The inclusion is a testament to the company’s growth story and its strong standing within the fuel retail sector. Our continued focus is to provide modern fuel retail convenience to customers, deliver on our ambitious strategy, and build long-term shareholder value through the next phase of our expansion,” he added:

In September 2020, Abu Dhabi National Oil Company (Adnoc) completed a private placement of 1.25 billion of Adnoc Distribution shares worth $1 billion to institutional investors, increasing the company’s free-floating equity to 20 per cent.

In May 2021, Adnoc placed an additional three per cent of Adnoc Distribution’s share capital valued at $445 million, increasing free float further to 23 per cent. It also issued approximately $1.195 billion of senior unsecured bonds due 2024, exchangeable into existing shares of Adnoc Distribution, constituting approximately seven per cent of the registered share capital of Adnoc Distribution under certain conditions.

Following the transactions, Adnoc will retain at least a 70 per cent strategic stake in the company.

The UAE’s largest fuel and convenience retailer has reported a first-half 2021 net profit of Dh1.15 billion, driven by higher fuel volumes, improvement in non-fuel and commercial gross profit margin and increased operational efficiencies.

Its shares last week closed at Dh4.48 per share.

-waheedabbas@khaleejtimes.com


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