ADNOC Distribution of Abu Dhabi sees inclusion in the FTSE Emerging Markets Index

A queue of cars waiting at a gas-pumping station in the Middle East

Image courtesy of Gulf Business

Gulf Business has recently reported that Abu Dhabi-listed retailer of fuel ADNOC Distribution announced on Sunday its inclusion in the EM or Emerging Markets Index of the Financial Times Stock Exchange or FTSE, for its final confirmation on September 6 and effective September 16, 2021, at close of business. 

A source familiar to the company stated that FTSE Russell added ADNOC Distribution to the FTSE EM Index after it met the necessary requirements, which may draw potential international investors to the shares of ADNOC Distribution and expand its overall base of investors. 

Observers included ADNOC Distribution in the MSCI emerging markets index from May 27, 2021. 

Bader Saeed Al Lamki, chief executive officer of ADNOC Distribution, said, “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”. 

Abu Dhabi National Oil Company or ADNOC privately placed 1.25 billion of the shares of ADNOC Distribution worth USD 1 billion to institutional investors in September 2020, augmenting its free-floating equity to 20 per cent. 

ADNOC added 3 per cent to the capital of shares of ADNOC Distribution worth USD 445 million, boosting free-float to 23 per cent in May 2021, issuing about USD 1.195 billion of senior unsecured bonds, or the “Exchangeable Bonds”, due 2024, exchangeable into existing shares of ADNOC Distribution, making up about 7 per cent of the registered capital of shares of ADNOC Distribution under certain conditions. 

The offering of combined equities and exchangeable bonds was the first in the Gulf Cooperation Council.