abu dhabi put fuel stations in stock market
Last Updated : GMT 09:07:40
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 09:07:40
Egypt Today, egypt today

To achieve reform

Abu Dhabi put fuel stations in stock market

Egypt Today, egypt today

Egypt Today, egypt today Abu Dhabi put fuel stations in stock market

The state-run Abu Dhabi National Oil
Abu Dhabi - Egypt Today

The state-run Abu Dhabi National Oil Co. will put a minority stake in its gas station subsidiary up on the local stock market. The company made the announcement on Monday, saying 10 percent of ADNOC Distribution will go onto the Abu Dhabi Securities Exchange pending regulatory approval.

The division operates 360 gas stations and 235 convenience stores across the United Arab Emirates, a federation of seven sheikhdoms on the Arabian Peninsula. The announcement comes as the region’s state-run oil companies look toward stock market offerings to boost their cash.

The biggest of them all is now being considered in Saudi Arabia. The kingdom is considering putting shares in the Saudi Arabian Oil Co., its state-run behemoth known as Saudi Aramco, on the local stock exchange and on one abroad.

According to experts, Abu Dhabi National Oil Co. kick-started a round of privatizations in the Middle Eastern oil industry, saying it will sell shares in its retail fuel stations unit and list them on the local stock exchange.

The government-owned crude producer may sell more than 10 percent in the unit, Abu Dhabi National Oil Co. for Distribution PJSC, Adnoc Chief Executive Officer Sultan Ahmed Al Jaber said Monday in an interview in Abu Dhabi. Adnoc, which sold its first bond last month, is close to closing a loan as it raises funds to expand and will seek partners to help develop businesses like oil production and refining, he said.

“What we’re trying to achieve here are numbers that would show an unprecedented commitment from the international market as well as other local investors to work alongside Adnoc in one of its very important subsidiary companies,” Al Jaber said.

The initial public offering is the first of several expected in the region, most notably that of Saudi state-owned oil giant Aramco, which will partly reverse the three-decade nationalization of the Middle East’s energy industry that started in 1950. Still, the Adnoc IPO marks only a partial step -- the unit operates filling stations in the United Arab Emirates and is far removed from the prized oil fields that generate the region’s extraordinary wealth. Adnoc already has crude development partnerships for its fields and is seeking to renew its biggest offshore concession.

Adnoc may seek a value of $10 billion to $14 billion for the distribution unit, according to people familiar with the matter. The business posted earnings before interest, tax, depreciation and amortization of 2.1 billion dirhams ($573 million) last year, according to Adnoc, suggesting a price-to-earnings ratio of up to 25 times.

While the lack of similar listed companies in the region and its position as a state-owned monopoly make valuation difficult, that would be a very high ratio by global standards. Based on rule-of-thumb metrics of Ebitda-to-valuation for comparable companies, a value closer to $5 billion might be more appropriate.

One possible positive for the valuation is the high-dividend policy promised for the next two years: Adnoc told prospective investors it planned to pay shareholders $400 million in both 2018 and 2019. There will also be an additional one-time payout of $200 million next April, the company said. If investors price the stock at a 5 percent dividend yield, the valuation would be about $8 billion

egypttoday
egypttoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

abu dhabi put fuel stations in stock market abu dhabi put fuel stations in stock market



GMT 11:22 2018 Wednesday ,10 October

Saudi student found dead inside US apartment

GMT 11:42 2018 Wednesday ,10 October

Four dead in Manama gas cylinder blast

GMT 08:32 2017 Thursday ,02 March

Sudan’s Bashir names ally prime minister

GMT 17:55 2011 Wednesday ,16 November

S. Africa seeks DNA of rhino horns seized in Hong Kong

GMT 13:57 2016 Wednesday ,24 February

Fans of Indian politician get tattoos for her birthday

GMT 00:01 2012 Tuesday ,08 May

Beren Saat, dream woman for Arab men

GMT 15:24 2017 Thursday ,17 August

12 Daesh elements killed in tunnel collapse

GMT 17:05 2012 Saturday ,10 March

Literary giants come face to face with readers

GMT 04:50 2016 Monday ,12 December

Al Azhar Imam heads for Abu Dhabi

GMT 19:49 2016 Tuesday ,14 June

Trudeau : Canadian hostage likely killed

GMT 08:24 2013 Thursday ,31 January

Cinderella

GMT 12:30 2014 Thursday ,03 April

Game developers to go global with Google play

GMT 03:46 2015 Wednesday ,09 September

Microsoft buys cloud computing security startup

GMT 15:42 2016 Sunday ,21 August

Facebook woos video-loving teenagers with new app

GMT 14:47 2012 Wednesday ,20 June

How to get rid of pimple marks
 
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday