The UAE’s largest bank has said that the initial value for the Abu Dhabi National Oil Company (Adnoc) public offering was successfully raised, whilst the market continues to show a healthy appetite for the listing.
First Abu Dhabi Bank (FAB), who made the comments in a statement on Thursday, is the lead arranger for the initial public offering (IPO) and the sole local bank involved.
According to the bank’s statement, the IPO is understood to be the largest listing in the UAE to date. The price range has been set at between Dh2.35 to Dh2.95 per share.
André Sayegh, FAB deputy group CEO and head of corporate and investment banking, said in a statement: “There is a clear interest in the market for the IPO, due to the long-established history that Adnoc has built and the high level of trust it reaps in the market.”
He added: “In line with the country’s ambitions to enhance the participation of the private sector in the economy, and to further support economic diversification efforts, this IPO also offers investors a secure investment opportunity that is competitively priced and that will provide them with healthy returns in the medium and long-term.”
The senior executive noted that the market was exhibiting healthy liquidity levels, and the Adnoc IPO represented an “ideal investment opportunity for individual and institutional investors.”
The bank’s statement added that the listing would be significantly valuable to the UAE’s economy as a whole.
Earlier this month, Sultan Ahmad Al Jaber, UAE Minister of State and group CEO of Adnoc confirmed plans to list a minority stake in the company’s subsidiary Adnoc Distribution on the Abu Dhabi Securities Exchange.
Delivering the opening keynote address at Abu Dhabi International Petroleum Exhibition and Conference, Al Jaber said the decision to launch the IPO was a historic moment and the first time it has placed shares, of one of its subsidiary companies, onto the public markets.