UAE: Adnoc sets IPO price at Dh2.25 to Dh2.43; could raise up to $2 billion

UAE: Adnoc sets IPO price at Dh2.25 to Dh2.43; could raise up to $2 billion

The final offer price is expected to be announced on March 3, while listing and trading are expected to commence on March 13, the company said

By Reuters Published: Thu 23 Feb 2023, 10:55 AM

State oil giant Abu Dhabi National Oil Co (Adnoc) said on Thursday it has set a price range for an initial public offering (IPO) of its gas unit that could raise up to $2 billion and give Adnoc Gas an equity valuation of $47 billion to $50.8 billion.

The price range for the unit it created in November by combining its gas processing arm and its liquefied natural gas subsidiary was set at Dh2.25 ($0.6126) to Dh2.43 per share, the company said in a statement.

Cornerstone investors Abu Dhabi Pension Fund, Alpha Wave Ventures II, IHC Capital Holding, OneIM Fund I, and entities ultimately controlled by ADQ and the Emirates Investment Authority have made a combined commitment of around $850 million, it added.

Adnoc is selling roughly 3 billion shares in its gas business, equivalent to about 4% of its issued share capital.

At the top of the range, Adnoc would raise roughly $2 billion from the sale, according to Reuters calculations.

Adnoc Gas' IPO was covered within hours of the company