Adnoc hires banks for retail unit IPO

Abu Dhabi National Oil Company (Adnoc) has picked a local bank and three foreign lenders as bookrunners for the planned initial public offering of its retail unit that could raise $1.5 billion (Dh5.51 billion) to $2 billion, sources said yesterday.

The listing for Adnoc Distribution, which manages petrol stations as well as convenience stores across the UAE, comes as Abu Dhabi joins other Gulf states such as Saudi Arabia and Oman, in privatising energy assets.

First Abu Dhabi Bank, HSBC, Bank of America Merrill Lynch and Citigroup have been mandated for the IPO, sources familiar with the matter told Reuters.

Boutique bank hired

The sources declined to be named as the matter is not public. An Adnoc spokesman declined to comment. Bank of America Merrill Lynch, Citigroup, HSBC and First Abu Dhabi Bank also all declined to comment.

Sources had earlier told Reuters US boutique investment bank Moelis & Co had been hired as an adviser as it seeks to attract billions of dollars in investments through joint ventures and prepares to publicly list shares in some units.

Rothschild has been picked as adviser for the flotation of Adnoc Distribution, while 10 banks were invited to pitch for a role in the IPO, Reuters had reported this week.

Adnoc has no plans to list the holding company.