Abu Dhabi state-backed oil giant ADNOC has announced its intent to offer approximately 3.1 billion shares of ADNOC Gas of which it is currently the majority shareholder, holding 90% of ordinary shares.

The marketed offering represents 4% of the issued and outstanding share capital of ADNOC Gas and will commence immediately. The offering is expected to close on February 21, 2025, subject to acceleration at ADNOC’s discretion.

The offering is open to qualified institutional and other investors in the UAE and internationally. It will not be available to the public domestically or any other jurisdiction.

The final number of shares and the offering price will be determined at the close of the bookbuilding process.

Net proceeds generated will be received by ADNOC.

ADNOC said the offering will enhance trading and liquidity in ADNOC Gas’ ordinary shares and diversify its shareholder base. The company said a higher free float will also provide a pathway towards inclusion in the Morgan Stanley Capital International (MSCI) Emerging Market Index and the Financial Times Stock Exchange (FTSE) Emerging Market Index.

BofA Securities, Citi, EFG-Hermes, First Abu Dhabi Bank, HSBC and International Securities are acting as joint global coordinators and joint bookrunners for the offering.

Earlier this month, ADNOC Gas revealed earnings of $5 billion for the full year 2024, with a quarterly income of $1.38 billion for the fourth quarter.

(Writing by Bindu Rai, editing by Seban Scaria)

bindu.rai@lseg.com