Abu Dhabi, United Arab Emirates – ADNOC Supply and Services PLC announced on Thursday that it has selected its shares for inclusion in the Morgan Stanley Capital International Emerging Markets Index.
This index tracks large and medium-sized companies in 24 emerging market countries.
The listing is scheduled to take effect on November 25.
This achievement comes after the successful secondary offering carried out by ADNOC last August on ADNOC Supply and Services shares worth 1.16 billion dirhams, or $317 million.
Which contributed to increasing the percentage of its free traded shares to approximately 22%.
It increased the average daily trading volume more than fourfold.
This offering also contributed to expanding the company’s institutional investor base, paving the way for increased visibility in the index.
The offering process witnessed coverage that exceeded supply by approximately seven times.
It is among the highest rates of secondary offerings in the region.
To embody investors’ firm confidence in the company’s strategic direction, the strength of its financial position, and its future growth prospects.
The selling price was set at 5.25 dirhams per share, representing the lowest discount witnessed in a secondary offering in the region at 3.33%.
According to brokers’ estimates, joining the index is expected to attract cash flows of more than AED 734 million ($200 million).
Which improves the liquidity of the stock and facilitates its accessibility by global investors.
Since its initial public offering, ADNOC Supply and Services has achieved a total return to shareholders of approximately 200%.
Supported by strong growth in revenue and earnings before interest, taxes, depreciation and amortization.
Furthermore, all 18 analysts currently covering the company maintain their recommendations to buy ADNOC Supply and Services stock.
This reflects the company’s firm market confidence in its financial and strategic performance.
