Abu Dhabi’s ADNOC sets price range for IPO of its gas unit -statement

Abu Dhabi’s ADNOC sets price range for IPO of its gas unit -statement

DUBAI - 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 2.25 dirhams ($0.6126) to 2.43 dirhams 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.

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

ADNOC is sharpening its focus on the gas market as Europe seeks to replace