ABU DHABI — ADNOC Distribution’s market cap surged to 44 billion dirhams (SR44 billion) by the end of September 2020, a 40 percent up compared to its market value on its date of listing back in 2017.

The increase in the market capitalization comes after a significant rise of 23.15 percent in the value of the company's share to 3.57 dirhams from 2.90 dirhams on the date of listing, according to the data released by the Abu Dhabi Securities Exchange (ADX), where the company's equities are traded.

As the company's positive performance persists, the shareholders continue to reap significant dividends that resulted in ratcheting the value of its share deals to 5.64 billion dirhams over the first nine months of 2020 thanks to the strategy adopted by the company's management which has rendered it among the very few listed firms paying out dividends more than once per year.

In March, ADNOC Distribution's shareholders approved a second and final dividend payment of 1.194 billion dirhams (9.55 fils per share) for the year ended Dec. 31, 2019. The payment came on top of an interim dividend that was paid in October, resulting in a full-year dividend of 2.39 billion dirhams. In 2020, the dividend will increase from 7.5 percent to 2.57 billion dirhams as per the company’s policy.

The company boasts a robust financial profile. On Sept. 14, 2020, ADNOC announced that it has successfully completed a placement to institutional investors of 1.25 billion shares in ADNOC Distribution. This represents 10 percent of ADNOC Distribution’s total share capital. With that additional 10 percent placement, valued at $1 billion, the company’s free float will increase to 20 percent, contributing to improved liquidity of ADNOC Distribution shares. — WAM