Abu Dhabi National Oil Company (ADNOC) has successfully concluded its marketed offering of ADNOC Gas shares, generating gross proceeds of approximately US$2.84 billion (Dh10.43 billion).
The offering involved around 3.1 billion ordinary shares, representing 4 per cent of ADNOC Gas’ issued share capital.
This move increases the company’s free float by 80 per cent, potentially paving the way for inclusion in the MSCI and FTSE Emerging Market Indices.
The offering witnessed substantial demand from institutional investors both within the Gulf Cooperation Council and internationally, with the offering being oversubscribed 4.4 times.
The shares were priced at Dh3.40 each, which is approximately 43 per cent higher than the initial public offering (IPO) price of Dh2.37, and represents a 5 per cent discount to the closing share price on February 20, 2025.
ADNOC Gas has demonstrated consistent financial growth, reporting an adjusted net income of US$5 billion for the full year 2024, with US$1.38 billion in net income for the fourth quarter.
This performance aligns with the company’s strategic objective of achieving over 40 per cent growth in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) by 2029.
Khaled Al Zaabi, ADNOC Group Chief Financial Officer, stated: “ADNOC is proud to have completed the first-ever marketed offering in the UAE and the largest placement on the ADX to date.
“The exceptional demand and competitive discount provided by the international and domestic investor community reflects the strong confidence in ADNOC Gas’ track record and growth prospects.”
He further added: “As a dedicated, long-term majority shareholder, ADNOC will continue to support ADNOC Gas, which is integral to Abu Dhabi and ADNOC’s decarbonisation and growth ambitions.”
Following the offering, ADNOC Group retains an 86 per cent shareholding in ADNOC Gas and has committed to a six-month restriction on selling additional shares, subject to certain exceptions.
BofA Securities, Citi, EFG-Hermes, First Abu Dhabi Bank, HSBC, and International Securities acted as joint global coordinators and joint book-runners for the offering.
ADNOC Gas, with access to a capacity of around 10 billion standard cubic feet of gas per day, supplies approximately 60 per cent of the UAE’s gas requirements and exports natural gas and associated products to customers in over 20 countries, serving a diverse range of domestic and international clients.
