UAE’s Adnoc Gas shares jump 25 percent after IPO raised

UAE’s Adnoc Gas shares jump 25 percent after IPO raised

Adnoc Gas, a subsidiary of Abu Dhabi’s main energy company, surged in its trading debut after raising $2.5 billion in the world’s biggest initial public offering this year.

The deal starts what’s likely to be a flurry of listings out of the Gulf, following on from last year’s strong showing.

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Shares of Adnoc Gas rose as much as 25 percent to 2.97 dirhams in early trading in the emirate. The stock priced at 2.37 dirhams per share, roughly the middle of the marketed IPO range, even though investors placed almost $125 billion of orders.

State-owned Adnoc sold a 5 percent stake in the company, which made record earnings in the year through October as Russia’s invasion of Ukraine roiled energy markets and sent natural gas prices surging. Cornerstone investors including Abu Dhabi state-linked firms subscribed to $850 million worth of shares ahead of the final pricing announcement.

The deal is a sign of continued feverish appetite for IPOs from the Gulf as governments try to fund a transition away from fossil fuels and bring more international investors into their markets.

The initial public offering is the biggest-ever in Abu Dhabi, surpassing chemicals