Adnoc Distribution gets MSCI EM Index inclusion

Dubai - The inclusion, effective from May 27 2021, is expected to attract new foreign investors into Adnoc Distribution shares


Issac John

Published: Wed 12 May 2021, 5:27 PM

Adnoc Distribution, a leading fuel and convenience retailer, announced on Wednesday its inclusion in the prestigious MSCI Emerging Markets Index.

The company, which is listed on the Abu Dhabi Securities Exchange, is the latest UAE entity to become part of the MSCI EM Index compiled by Morgan Stanley Capital International. The inclusion, effective from May 27 2021, is expected to attract new foreign investors into Adnoc Distribution shares.

The higher status will also contribute to the diversification of the fuel and convenience retailer’s investor base and strengthens awareness of its unique value proposition, the company said in a statement.

The MSCI UAE Index is designed to measure the performance of the large and mid-cap segments of the UAE market. With nine other constituents, the index covers more than 85 per cent of the UAE equity universe. Other constituents include First Abu Dhabi Bank, Emirates Telecom Corp, Emirates NBD Bank, Abu Dhabi Commercial Bank, Aldar Properties, Emaar Properties, Dubai Islamic Bank, Abu Dhabi Islamic Bank, and Emaar Malls.

The Abu Dhabi-based fuel distributor said it was included in the index after meeting the necessary requirements and will now be among the UAE listed companies to be part of the MSCI EM index which is most widely tracked by global institutional investors.

“The inclusion is expected to increase the attractiveness of Adnoc Distribution’s shares to potential international investors and thus further diversifying the Company’s investor base,” said the statement.

Ahmed Al Shamsi, acting chief executive officer of Adnoc Distribution said inclusion on the MSCI Emerging Markets Index is an important milestone in Adnoc Distribution’s thriving equity narrative.

“The inclusion is a testament to the company’s ability to grow and a reflection of its solid performance and resilience since IPO. We remain focused on delivering strong and stable returns as we continue to grow our international investor base,” said Al Shamsi.

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

This placement was the largest block placement of a publicly listed GCC company and leveraged on significant investor demand for Adnoc Distribution shares, driven by its attractive value proposition. “This transaction also diversified the Company’s shareholder base and allowed for greater liquidity of its shares on the Abu Dhabi Securities Exchange,” the company said.

In the first quarter, the company recorded a net profit of Dh631million and reported strong cash flow generation of Dh835 million as of 31 March 2021, the company’s liquidity was at Dh5.1 billion in the form of Dh2.3 billion in cash and cash equivalents and Dh2.8 billion in unutilized credit facility.

The company said recently that it intends to accelerate delivery momentum and remains on track to meet its guidance to open a total of 70 to 80 new stations across the UAE and Saudi Arabia by year end, of which 30-35 are expected to be opened in the UAE. Of the four new stations opened in the U in the quarter, two were ‘Adnoc On the go’ neighborhood stations, designed to provide increased customer convenience and meet the needs of previously underserved locations, the fuel retailer said.


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