You are here: Home » Reuters » News
Business Standard

Goldman, JPMorgan, HSBC vie for lead roles on UAE ADNOC retail unit IPO: sources

Reuters  |  ABU DHABI/DUBAI 

By Stanley Carvalho, Saeed Azhar and Hadeel Al Sayegh

ABU DHABI/(Reuters) - Abu Dhabi's national company is weighing proposals from Goldman Sachs, First Bank, HSBC and JPMorgan for lead roles in the listing of its retail business as the emirate joins other states in privatising assets, sources familiar with the matter said.

Rothschild is separately in a strong position for an advisory role in a deal that could raise $1.5 to $2 billion, sources told

The listing of National Co's (ADNOC) Distribution business, which manages 300 petrol stations as well as convenience stores across the United Arab (UAE), is planned before the end of the year, one of the sources told

The listing of the retail unit in is aimed at boosting the valuation of the company in an era of cheap prices, they said.

ADNOC's listing could also stir the UAE's lacklustre scene from its recent slumber. There have been only two IPOs so far in 2017 in the UAE, raising $348.5 million, and none at all last year, Thomson data shows.

Plans to list some of ADNOC's services businesses come as other states, such as Saudi Arabia and Oman, have also embarked on floating energy assets.

Beyond the region, companies are looking to raise capital from listings or sales of retail units.

China Petroleum and Chemical Corp is planning to list its retail unit in Hong Kong as early as the end of this year in a multi-billion dollar deal, while Thailand's biggest energy company PTT is examining a proposal to list its retail business.

The pitching process for the deal is under way after the unlisted group announced this week that it is looking to float some of its services businesses and enter tie-ups with global investors to help it create new revenue streams and secure more market access.

Ten banks have been invited to pitch for a role in the IPO,one of the sources said.

declined to confirm details of the pitching process, but a spokesman told "central to ADNOC's new approach is the more active management of its portfolio of assets and businesses."

"is therefore considering the of minority stakes of some of its services businesses and we will update the market on its plans in due course," the spokesman said.

The banks either declined to comment or did not immediately respond to queries for comments.

has no plans to list the holding company. State-owned produces around 3 million barrels of per day and manages 95 percent of UAE's proven reserves and 92 percent of the country's gas reserves.

(Editing by Keith Weir)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, July 12 2017. 14:29 IST