DUBAI, Feb 17 (Reuters) – Abu Dhabi National Oil Company (ADNOC) will sell 4% of its gas business in an initial public offering (IPO), according to a newspaper release and a statement emailed on Friday.
ADNOC Gas’ offering is scheduled to be open to institutional investors from February 23 to March 2, while retail investors will have until March 1 to subscribe, according to the National newspaper’s notice and statement.
Share trading is expected to begin on March 13. No per-unit price target has been set for the 3.07 billion shares making up the sale.
Reuters first reported the IPO size on Thursday, ahead of the announcement. Sources told Reuters last month that ADNOC is eyeing a valuation of at least $50 billion for its gas business, which would mean IPO proceeds of about $2 billion or more.
ADNOC holds a 95% stake in ADNOC Gas after transferring 5% of the share capital to the Abu Dhabi National Energy Company (TAQA.AD). After the IPO, ADNOC will own 91% of ADNOC Gas.
last update
Watch 2 more stories
Should the transaction go through, ADNOC Gas expects dividend payments of EUR 1.625 billion.
ADNOC Gas plans to offer an additional US$1.625 billion in the second quarter of 2024 for the second half of 2023.
The company said it expects to “reach its annual dividend target of $3.25 billion.
ADNOC is sharpening its focus on gas as Europe seeks to replace all Russian energy imports as early as mid-2024 after gradual supply cuts were imposed in the wake of western sanctions Moscow is describing as a “special operation” in Ukraine.
Middle East companies have raised $21.9 billion through IPOs in 2022, more than half the total for the entire EMEA region, which includes Europe and Africa, according to Dealogic.
In the past two years, ADNOC has listed petrochemical company Borouge (BOROUGE.AD), fertilizer and ammonia maker Fertiglobe (FERTIGLOBE.AD) and ADNOC Drilling (ADNOCDRILL.AD).
It also plans to list its logistics and services unit on the stock exchange.
Reporting by Hadeel Al Sayegh; Edited by Christian Schmollinger, Gerry Doyle and Tom Hogue
Our standards: The Thomson Reuters Trust Principles.
Comments are closed.