Khaleej Times, Thursday, Feb 23, 2023 | Sha'ban 03, 1444
UAE: Adnoc sets IPO price at Dh2.25 to Dh2.43; could raise up to $2 billion
State oil giant Abu Dhabi National Oil Co (Adnoc) said on Thursday it has set a
price range for an initial public offering (IPO) of its gas unit that could
raise up to $2 billion and give Adnoc Gas an equity valuation of $47 billion to
The price range for the unit it created in November by combining its gas
processing arm and its liquefied natural gas subsidiary was set at Dh2.25
($0.6126) to Dh2.43 per share, the company said in a statement.
Cornerstone investors Abu Dhabi Pension Fund, Alpha Wave Ventures II, IHC
Capital Holding, OneIM Fund I, and entities ultimately controlled by ADQ and the
Emirates Investment Authority have made a combined commitment of around $850
million, it added.
Adnoc is selling roughly 3 billion shares in its gas business, equivalent to
about 4% of its issued share capital.
At the top of the range, Adnoc would raise roughly $2 billion from the sale,
according to Reuters calculations.
Adnoc Gas' IPO was covered within hours of the company opening its books, a sign
that demand from equity investors for Gulf listings remains healthy.
The final offer price is expected to be announced on March 3, while listing and
trading are expected to commence on March 13, the company said.
Adnoc is sharpening its focus on the gas market as Europe seeks to replace all
Russian energy imports as early as mid-2024 after gradual supply cuts since
Western sanctions were imposed on the country over its invasion of Ukraine.
Companies from the Middle East raised some $21.9 billion through IPOs in 2022,
more than half the total for the wider EMEA region, which also includes Europe
and Africa, according to Dealogic data.
Over the past two years, Adnoc has listed petrochemicals company Borouge
(BOROUGE.AD), fertilisers and clean ammonia products maker Fertiglobe
(FERTIGLOBE.AD), and Adnoc Drilling (ADNOCDRILL.AD). It also plans to float its
logistics and services unit.