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Abu Dhabi National Oil Co (ADNOC) has set the final price for the shares offered by its gas business in an IPO at 2.37 dirhams ($0.64) per share, taking the total size of the offering to $2.5 billion, the largest-ever listing on the Abu Dhabi Securities Exchange.
The implied market capitalisation is $50 billion, the state oil giant said in a statement on Friday. It added that the bookbuilding process generated orders of over $124 billion from institutional and retail investors.
Khaled Al Zaabi, Group CFO of ADNOC said the "truly historic listing" is the fifth company ADNOC has successfully brought to market in as many years.
"ADNOC Gas is a highly attractive value proposition, and underpins ADNOC’s key role as a catalyst and critical enabler of domestic economic growth and the diversification of the UAE financial marketplace."
The company, which raised the size of the stake sale to 5% from 4% on keen investor demand, said the offering has been fully allocated, grossing approximately $2.5 billion, the net proceeds of which will be received by ADNOC, upon settlement.
ADNOC is selling roughly 3.84 billion shares in its gas business, equivalent to about 5% of its issued share capital. Upon completion of the sale, ADNOC will continue to own a majority 90% stake in the company. Abu Dhabi Pension Fund, Alpha Wave Ventures II, LP, IHC Capital Holding LLC, OneIM Fund I LP, and entities ultimately controlled by ADQ and the Emirates Investment Authority are the cornerstone investors.
ADNOC Gas is expected to be listed on the exchange on March 13 under the ticker symbol “ADNOCGAS”.
The Adnoc Gas IPO is the biggest-ever in ADX, surpassing chemicals firm Borouge’s $2 billion deal in 2022.
(Writing by Brinda Darasha; editing by Seban Scaria)
