ADNOC Gas announces intent to list 4% stake on ADX

ADNOC has announced its intention to float a 4 per cent stake of its gas business, in an initial public offering on the Abu Dhabi Securities Exchange (ADX).

The state-owned energy giant will sell more than three billion (3,070,056,880) shares of ADNOC Gas.

We’re pleased to announce our Intention to Float a minority stake in #ADNOCGas on @ADX_AE.

ADNOC Gas is a world-class energy company, supplying ~60% of the UAE’s gas along with a diverse customer base in over 20 countries.

Subscriptions open on 23 February.

— ADNOC Group (@ADNOCGroup) February 17, 2023

The UAE retail offering subscription period is expected to open on February 23, and close on March 1.

It will include individuals as well as employees and Emirati retirees of ADNOC Group companies residing in the UAE, the parent company said.

The qualified investor offering subscription period is expected to close a day later.

ADNOC Gas aims to list on the bourse on March 13.

Prior to the offering, ADNOC transferred approximately 5 per cent shares of ADNOC Gas to TAQA. The parent company is expected to own approximately 91 per cent of its gas business after the IPO.

ADNOC Gas was established in January 2023 through the consolidation of ADNOC’s gas processing and LNG businesses.

The gas processing, operations and marketing company has an access to capacity of around 10 billion standard cubic feet of gas per day. It supplies around 60 per cent of the UAE’s gas needs, as well as exports natural gas and related products to customers in over 20 countries.

Global demand for gas is expected to continue to grow as the world looks to further decarbonise its energy systems.

ADNOC Gas produced a shipment of 137,000 cubic meters of liquefied natural gas, which was recently dispatched from Abu Dhabi to Brunsbüttel, Germany.

Read: ADNOC delivers first Middle East LNG cargo to Germany

ADNOC Gas’s twelve-month adjusted revenues to October 2022 totaled $24.9bn, with an adjusted EBITDA of $8.7bn and a net income of $4.8bn over the same period.

It expects to pay a dividend of $3.25bn relating to its financial performance in the year ended December 31, 2023.

“Natural gas is central to the energy transition and as the UAE’s gas champion, ADNOC Gas is well-positioned to responsibly harness our significant natural gas resources, while driving efficiencies, delivering value, and reliably supplying this key fuel to meet the world’s growing energy needs,” said Khaled Al Zaabi, acting group CFO of ADNOC.

“This is the fifth occasion where we are bringing an ADNOC company to the market in as many years.”

The Abu Dhabi-based energy company has listed several of its subsidiaries in recent years. ADNOC Drilling Company was listed on the bourse in October 2021.

Read: ADNOC Drilling lists IPO on Abu Dhabi Securities Exchange

This was preceded by ADNOC Distribution’s IPO, which was launched in 2017.

Read: Abu Dhabi’s ADNOC Distribution fuel firm IPO raises $851m

Last year, ADNOC together with Borealis, listed their petrochemicals joint venture Borouge.

Read: ADNOC delivers fourth consecutive record-setting IPO on ADX