ADNOC Gas raises IPO size to $2.5bn on heavy demand

ADNOC Gas raises IPO size to $2.5bn on heavy demand

The Abu Dhabi National Oil Company (ADNOC) has raised the size of its gas unit’s initial public offering (IPO) to 5 per cent due to significant investor demand. Initially, the state-owned energy company was planning to raise $2bn by offering a 4 per cent stake in ADNOC Gas. ADNOC said it has increased the number of ordinary shares offered in the IPO of its gas unit to 3.8 billion, approximately 5 per cent of the company’s total issued share capital, at Dhs2.25 to Dhs2.43 apiece to raise around $2.5bn. “We have witnessed substantial investor demand across all tranches, reflecting ADNOC Gas’ status as a key component of Abu Dhabi and the UAE’s energy ecosystem, and a vital contributor to drive decarbonization and the energy transition in the UAE,” said Khaled Al Zaabi, group CFO of ADNOC. The price range for shares in ADNOC Gas implies a market capitalisation of around $50.8bn. “The offering size increase reaffirms ADNOC Gas as a highly compelling investment opportunity and we look forward to welcoming both local and international investors to join ADNOC and partake in the company’s future growth,” added Al Zaabi. Last week, investors snapped up all available ADNOC Gas shares within hours