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Global ECM Weekly Monitor Nov 24, 2017 – Riverstone CKD II Management Company, Abu Dhabi National Oil Company

Our previous Global ECM Weekly Monitors can be found here.

Riverstone CKD II Management Company, S. de R.L.

  • Announcement Date: November 22, 2017
  • Gross Offering Amount: MXN $9 billion
  • Price per share: MXN $100
  • Lead Bank: Credit Suisse
  • Nature of the issue: Follow-on Equity Offering; Development of Trust
  • Security Issued: Development Trust Certificates (CKD)
  • Overallotment: N/A

Riverstone is a private capital funds manager invested in the global energy industry with US $34 billion of invested capital. The company invests in three main areas: Energy and Electric Power Generation, Renewable and Alternative Energy, and Credit.

Riverstone is offering MXN $9 billion in Development Trust Certificates (CKD) under a restricted public offering on the Mexico Stock Exchange. The CKD’s will be valid for 10 years. The newly-created trust will invest in renewable and clean energy in Mexico. The company believes they can capitalize on the deregulation and expansion of the industry and the government’s focus on cutting carbon emissions. The trust aims to achieve an IRR of 15%.

Abu Dhabi National Oil Company for Distribution PJSC (ADX: ADNOCDIST)

  • Announcement Date: November 20, 2017
  • Expected Offer Date: December 13, 2017
  • Gross Offering Amount: AED $7.375 billion
  • Price per share: AED $2.35 – 2.95
  • Lead Banks: Citi, EFG Hermes Holding, First Abu Dhabi Bank, Goldman Sachs, HSBC, Merrill Lynch, Morgan Stanley, Rothschild
  • Nature of the issue: IPO
  • Security Issued: Ordinary Shares
  • Overallotment: N/A

Abu Dhabi National Oil Company for Distribution PJSC (ADNOCDIST) is a leading operator of retail fuel service stations in the United Arab Emirates (UAE), holding 37% market share. The company operates 360 retail fuel service stations and 235 ADNOC Oasis convenience stores. ADNOCDIST is a subsidiary of Abu Dhabi National Oil Company, an integrated oil and gas company in the UAE.

Abu Dhabi National Oil Company is offering between 1.25 billion to 2.5 billion shares through the IPO, representing ~20% stake in ADNOCDIST. The IPO will consist of two tranches with 5% of shares being offered in the first tranche and the remainder in the second tranche.

The minimum applications of the first and second tranche are AED $10,000 worth of shares and AED $5,000,000 worth of shares, respectively. The final price will be announced on December 8, 2017 and will range from AED $2.35 – 2.95.

ADNOCDIST intends to pay dividends twice each fiscal year, beginning with a special dividend in April 2018 of USD $200 million (gross).

Abu Dhabi National Oil Company will receive the proceeds from the sale. The company plans grow its operations and profitability by introducing new services, optimizing current operations, and leveraging its existing client relationships to pursue organic growth.

Related Reading for Equity Capital Markets

Equity Capital Markets Topics

Dividend Policy
Dividend Reinvestment Plans (DRIP)
Block Trades

Related Product Groups for ECM

Equity Research
Investment Banking
Debt Capital Markets – another financing group
Sales & Trading – for equity derivatives to pair with equity issues; equity sales
Corporate Banking
Wealth Management/Investment Advisors
Buy Side/Asset Management

Sara
Sara
Sara Troka is a first year HBA student at Ivey Business School. Sara will be joining a bank in NYC next summer. She was involved in the York Finance Club as VP Marketing and the York University Student Investment Fund as a Junior Analyst. Outside of finance, Sara enjoys photography and fashion. She is an avid traveler who enjoys exploring historic cities and beaches across Europe.
https://www.linkedin.com/in/saratroka/

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