Abu Dhabi – Mubasher: The Abu Dhabi National Oil Company (ADNOC) has raised $1.64 billion following the successful closing of the combined offering of Abu Dhabi National Oil Company for Distribution's (ADNOC Distribution) shares and issuance of exchangeable bonds.
The combined offering has attracted new institutional investors and foreign direct investments (FDIs) into the UAE, according to a recent bourse filing.
The combined offering was set at a blended price of AED 4.82 per share, which is 5.7% above the current three-month volume-weighted average share price and 1% less than today’s closing price of AED 4.85.
With a maturity date of 2024, the denominated US dollar exchangeable bonds bear a coupon of 0.70% and are issued at an issue price of 100%.
These bonds will be exchangeable into existing shares of ADNOC Distribution at an exchange price of AED 5.01 ($1.37) under certain conditions.
The deal structure could increase the free float of ADNOC Distribution to 30% by bringing greater liquidity to ADNOC Distribution shares and diversifying the shareholder base.
The UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, Sultan Ahmed Al Jaber, remarked: "The success of this innovative and pioneering Combined Offering, the first of its kind in the GCC, once again highlights the attractive investment opportunities and environment provided by ADNOC and, more broadly, Abu Dhabi and the UAE."
It is noteworthy to mention that on Wednesday, 26 May, ADNOC announced its offering of around 375 million shares in ADNOC Distribution and the issuance of about $1.195 billion of senior unsecured bonds due 2024.
