Adnoc cuts price range for IPO

Abu Dhabi National Oil Co (Adnoc) has cut the price range for an initial public offer of shares in its fuel distribution unit and will sell only a 10 per cent stake in the unit, valuing the potential deal at $900 million.

UAE stock markets have been hit hard this year by subdued economic growth due to low oil prices, a weak real estate market and geopolitical tensions in the Middle East.

Abu Dhabi’s state-owned oil firm had indicated last month that it could sell as much as 20 per cent of Adnoc Distribution at a higher price range, which would have valued the deal as high as $2 billion, making it the UAE’s biggest IPO since 2007.