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UAE -- Abu Dhabi National Oil Co. (Adnoc) is considering the public sale of shares in two affiliates with listings on the local stock market as it seeks alternative ways to raise funds. Adnoc Drilling is one of the candidates for an initial public offering (IPO) that might happen as early as the fourth quarter of this year, sources told Energy Intelligence. The size of a possible IPO is unclear. Baker Hughes acquired a 5% stake in Adnoc Drilling in 2018 (IOD Oct.9'18). The other potential IPO candidate is Abu Dhabi-based fertilizer producer Fertiglobe in which Adnoc holds a 42% stake. Netherlands-based OCI, which co-owns Fertiglobe, confirmed that an IPO was being considered. The IPOs would extend a financing strategy that saw Adnoc sell 10% of the shares in Adnoc Distribution in a 2017 IPO. That was followed last year by the sale of a further 10% stake in the marketing, distribution and retail fuel affiliate (IOD Sep.14'20). Under Sultan al-Jaber, who took over as CEO in early 2016, Adnoc has undergone a major overhaul aimed at boosting efficiency and modernizing the national oil company, which had previously been managed conservatively (PIW Apr.9'21). However, al-Jaber has repeatedly ruled out a sale of shares in Adnoc itself via an IPO.

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