ADNOC Gas boosts liquidity with $2.84bn offering on ADX

The Abu Dhabi National Oil Company (ADNOC) has completed the marketed offering of 3.1 billion ordinary shares in ADNOC Gas, raising approximately $2.84bn (equivalent to Dhs10.4bn).

This offering, which represents 4 per cent of ADNOC Gas’ total share capital, saw exceptional demand from institutional investors in the GCC and internationally, with a total oversubscription of 4.4x.

The shares were priced at Dhs3.40 each, representing a 43 per cent premium over the initial public offering (IPO) price of Dhs2.37 per share.

The price is also a 5 per cent discount to ADNOC Gas’ closing share price of Dhs3.58 on February 20, the last trading day ahead of the offering.

ADNOC Gas offering is the largest placement on ADX so far

The offering marks the largest placement on the Abu Dhabi Securities Exchange (ADX) to date and increases ADNOC Gas’ free float by 80 per cent, bringing its free float to 9 per cent.

Khaled Al Zaabi, group CFO at ADNOC, said: “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 reflect the strong confidence in ADNOC Gas’ track record and growth prospects. ADNOC will continue to support ADNOC Gas, which is integral to Abu Dhabi and ADNOC’s decarbonisation and growth ambitions.”

Strong financial performance

The offering attracted significant investor interest, reflecting confidence in the company’s growth trajectory and its strong financial performance.

For the full year 2024, the company posted an adjusted net income of $5bnm the highest since its IPO, with a net income of $1.38bn in Q4 2024, significantly ahead of Bloomberg consensus estimates.

ADNOC Gas’ strong performance is aligned with the company’s refreshed growth pipeline, which was outlined in November 2024.

This includes the planned acquisition of Ruwais LNG and a target of over 40 per cent adjusted EBITDA growth by 2029.

ADNOC Group will retain an 86 per cent majority shareholding in the company and has agreed to a six-month lock-up period, preventing the sale of further shares, subject to certain exceptions.

The offering’s success is expected to increase the company’s liquidity and potentially provide a pathway for its inclusion in the MSCI Emerging Market Index and FTSE Emerging Market Index at the next quarterly review, subject to meeting the inclusion criteria.

This inclusion could further diversify the company’s investor base and raise its profile globally.

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