By: Mahmoud Gamal
Abu Dhabi – Mubasher: The IPO of the Abu Dhabi National Oil Company’s (ADNOC) distribution unit is expected to see significant response by investors amid reports reveal that the individual tranche had been oversubscribed by 2000%, analysts stated.
The reduction of the IPO’s price range will attract many institutions on the final day of subscription, Wadah Al-Taha, member of the National Advisory Board of Chartered Institute for Securities &Investments (CISI), told Mubasher.
ADNOC distribution is a good addition to the UAE’s markets, Al-Taha added, noting that the company’s dividends were expected to reach 60% of its annual net profits.
ADNOC Distribution will boost the Abu Dhabi’s Securities Exchange’s (ADX) liquidity following its listing, said Fadi El-Ghattis MindCraft Consultants’ CEO.
The UAE’s Supreme Petroleum Council approval of spending AED 400 billion in five years is enough to ensure investors in the oil sector, market analyst Mohanad Dayak stated.
Low liquidity in the domestic markets pushed most investors toward the global markets and digital currencies, Dayak concluded.
The final price of ADNOC Distribution IPO will be released on 8 December, while the company's stock will be listed on the ADX on 13 December.
Translated by: Muhammad Khalid