ABU DHABI - The fuel distribution unit of Abu Dhabi National Oil Company priced its initial public offering (IPO) at the mid-point of a revised indicative range, valuing the deal at 3.1 billion dirhams ($851 million), the company said on Friday.
ADNOC Distribution IPO priced each share at 2.50 dirhams, it said in a statement, compared with a revised indicative range of 2.35-2.65 dirhams set last week.
The company sold 1.25 billion shares, or 10 percent of its share capital. The stock will be listed and traded on the Abu Dhabi Securities Exchange (ADX) on Dec. 13. Based on the offer price, the market capitalisation will be 31.3 billion dirhams.
This is the first IPO on the ADX in the last six years and the largest IPO in Abu Dhabi in a decade, the statement said.
"ADNOC Distribution's strong business model, unique market position and attractive growth prospects has garnered healthy and solid demand for the IPO," Sultan Ahmed al Jaber, group chief executive of state-owned ADNOC, said in the statement.
Local institutional investors accounted for 60 percent of the offering, international institutions took 30 percent while retail investors subscribed to the rest. The retail tranche was doubled to 10 percent from 5 percent due to high demand.
ADNOC Distribution's IPO has been launched after low oil prices hit revenues of Gulf and other oil producers.
Saudi Arabia plans to list 5 percent of its national oil company Saudi Aramco IPO by the end of 2018. Saudi officials say it could raise $100 billion.
Tariq Qaqish, managing director for asset management at Mena Corp, said the IPO pricing offered upside for investors and aimed "to reactivate the IPO market in Abu Dhabi, to give more depth and add to the sectors in the index which is currently skewed to financial, banking and real estate."
Abu Dhabi's main share index .ADI dropped 0.8 percent to 4,277 points on Thursday, the last day of the trading week.
(Reporting by Stanley Carvalho; Editing by Edmund Blair) ((firstname.lastname@example.org; + 9712 6444431; Reuters Messaging: email@example.com))