ADNOC Gas eyes $2bn from world’s biggest IPO this year

ADNOC, the UAE’s national oil company, wants to raise up to $2bn from its natural gas business in what is set to be the largest initial public offering so far this year.

Read: ADNOC Gas announces intent to list 4% stake on ADX

The company is selling a 4 per cent stake in ADNOC Gas, with each of the 3.07 billion shares being offered at between Dhs2.25 and 2.43.

At the top of the range, the company will be valued at $50.8bn, making it one of the world’s largest listed gas firms and roughly on a par with Eni SpA and Occidental Petroleum Corp.

Several funds, most of them Abu Dhabi state-linked entities, have committed $850m as cornerstone investors. Among them are Alpha Dhabi and IHC Holding.

Subscriptions are now open until 1 March for the UAE Public Offering of #ADNOCGas – an opportunity for UAE citizens and residents to invest in a world-class energy company.

The price range for the #ADNOCGas offering has been set between AED 2.25-AED 2.43 per share.

— ADNOC Group (@ADNOCGroup) February 23, 2023

Adnoc Gas IPO the biggest-ever in Abu Dhabi

The IPO will be the biggest-ever in Abu Dhabi at the top end of the range. It’s the latest in a series of stock sales in the region as governments seek to fund a transition away from fossil fuels and bring more international investors into their markets.

That effort, combined with surging oil and gas prices, helped the UAE and Saudi Arabia buck a global IPO slump in 2022.

In all of Europe, the Middle East and Africa so far this year, only $1.67bn has been raised through IPOs, data compiled by Bloomberg show.

Prior to the IPO, ADNOC transferred 5 per cent of ADNOC Gas to Abu Dhabi-based Taqa, the biggest power producer in the UAE.