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Abu Dhabi’s ADNOC Distribution will be included in the FTSE Emerging Markets (EM) Index, from 16 Sept. 2021, after final confirmation by FTSE on 6 Sept.
The inclusion is expected to increase the attractiveness of ADNOC Distribution’s shares to potential international investors and further diversify its overall investor base and attract foreign inflows, Abu Dhabi Securities Exchange (ADX) listed company said in a bourse filing.
The FTSE Emerging index tracks stocks from emerging markets globally and includes large and mid-cap securities.
In May this year Morgan Stanley Capital International (MSCI) included ADNOC Distribution in its MSCI Emerging Markets Index.
Last year ADNOC completed a private placement of 1.25 billion of ADNOC Distribution shares (valued at $1 billion) to institutional investors, increasing its 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 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.
The fuel distributor reported second quarter net profit of first half AED 521 million ($141.8 million)
(Writing by Brinda Darasha; editing by Seban Scaria)
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© ZAWYA 2021
