ADNOC included in FTSE Emerging Markets Index from September 16

ADNOC Distribution was included in the FTSE EM Index by FTSE Russell after meeting the requirements and will now be part of this widely tracked index, a go-to for global institutional investors. The inclusion is expected to increase the attractiveness of ADNOC Distribution’s shares to potential international investors and further diversify the company’s overall investor base, a company press release said on Sunday.

Bader Saeed Al Lamki, CEO of ADNOC Distribution, said, "Following the inclusion of ADNOC Distribution in the MSCI EM Index in May 2021, the FTSE EM Index marks another important milestone in ADNOC Distribution’s successful equity story. This will continue to enhance the company’s investment appeal and visibility among global investors, attracting more foreign inflows into ADNOC Distribution shares.

"The inclusion is a testament to the company’s growth story and its strong standing within the fuel retail sector. Our continued focus is to provide modern fuel retail convenience to customers, deliver on our ambitious strategy, and build long-term shareholder value through the next phase of our expansion," he added.

In September 2020, Abu Dhabi National Oil Company (ADNOC) completed a private placement of 1.25 billion of ADNOC Distribution shares (valued at US$1 billion) to institutional investors, increasing the Company’s free-floating equity to 20 percent. In May 2021, ADNOC placed an additional 3 percent of ADNOC Distribution’s share capital (valued at $445 million), increasing free float further to 23 percent. It also issued approximately $1.195 billion of senior unsecured bonds (Exchangeable Bonds) due 2024, exchangeable into existing shares of ADNOC Distribution, constituting approximately 7 percent of the registered share capital of ADNOC Distribution under certain conditions.

Following the transactions, ADNOC will retain at least a 70 percent strategic stake in the company as it continues to see significant growth potential in ADNOC Distribution.

These equity placements leveraged significant investor demand for ADNOC Distribution shares, driven by its attractive value proposition. These transactions also diversified the company’s shareholder base and allowed for greater liquidity of its shares on the Abu Dhabi Securities Exchange.