BANKS EYE LEAD ROLE IN ADNOC UNIT LISTING
Goldman Sachs, HSBC and JPMorgan among those being considered for listing of Abu Dhabi oil firm’s unit, say sources
ABU Dhabi’s national oil company is weighing proposals from Goldman Sachs, First Abu Dhabi Bank, HSBC and JPMorgan for lead roles in the listing of its retail business as the emirate joins other Gulf states in privatising assets, say sources.
Rothschild is separately in a strong position for an advisory role in a deal that could raise US$1.5 to US$2 billion (RM6.4 to RM8.59 billion).
The listing of Abu Dhabi National Oil Co’s (Adnoc) distribution business, which manages 300 petrol stations as well as convenience stores across the United Arab Emirates (UAE), was planned before the year-end, said a source.
The listing of the retail unit in Abu Dhabi is aimed at boosting the valuation of the company in an era of cheap oil prices.
Adnoc’s listing could also stir the UAE’s lacklustre initial public offering scene from its recent slumber. There have been only two initial public offerings (IPOs) so far this year in the UAE, raising US$348.5 million, and none at all last year.
Plans to list some of Adnoc’s services businesses come as other Gulf states, such as Saudi Arabia and Oman, have also embarked on floating energy assets.
Beyond the Gulf region, oil companies are looking to raise capital from listings or sales of retail units. China Petroleum and Chemical Corp is planning to list its retail unit in Hong Kong as early as the end of this year in a multi-billion dollar deal, while Thailand’s biggest energy company PTT is examining a propos- al to list its retail business.
The pitching process for the Adnoc deal is under way after the unlisted group announced this week that it was looking to float some of its services businesses and enter tie-ups with global investors to help it create new revenue streams and secure more market access.
Ten banks have been invited to pitch for a role in the IPO.
An Adnoc spokesman said: “Central to Adnoc’s new approach is the more active management of its portfolio of assets and businesses”.
Adnoc has no plans to list the holding company. State-owned Adnoc produces around three million barrels of oil per day and manages 95 per cent of UAE’s proven oil reserves and 92 per cent of the country’s gas reserves. Reuters