ADNOC Gas floats 4% stake in multibillion IPO

ADNOC Gas, the world-class integrated gas processing company, on Friday announced its intention to proceed with an initial public offering (IPO) of more than 3.07 billion of its shares and to list and trade on the Abu Dhabi Securities Exchange (ADX).

Subscription for the IPO’s UAE retail offer is expected to run from February 23 to March 1, while qualified investors can avail the offer until March 2, with the final offer price on March 3. Trading is scheduled to start on March 13.

Commenting on the launch of the ADNOC Gas IPO process, Khaled Al Zaabi, Acting Group CFO of ADNOC, said: “We are very pleased to announce our intention to float a minority stake in ADNOC Gas, our world-class gas processing, operations and marketing company. Natural gas is central to the energy transition and as the UAE’s gas champion, ADNOC Gas is well-positioned to responsibly harness our significant natural gas resources, while driving efficiencies, delivering value, and reliably supplying this key fuel to meet the world’s growing energy needs.

“This is the fifth occasion where we are bringing an ADNOC company to the market in as many years, and we are delighted to once again offer international and local investors a highly compelling investment opportunity, allowing shareholders to partake in ADNOC and Abu Dhabi’s ongoing value creation journey.”

Prior to the offering, ADNOC transferred a 5% stake in ADNOC Gas to Abu Dhabi-based Taqa, the biggest power producer in the UAE.

Ahmed Mohamed Alebri, Acting Chief Executive Officer of ADNOC Gas, said: “ADNOC Gas is a vital component of the UAE’s energy system and is at the heart of the country’s goals of achieving gas self-sufficiency and becoming a gas net exporter. This is enabled by our dedicated people and world-class integrated gas platform with access to a total gas processing capacity of over 10 billion standard cubic feet per day and a liquid processing capacity of 29 million tonnes per year, that is underpinned by a competitive and reliable feedstock supply.

“With anticipated substantial and consistent revenues and resilient margins, we believe that ADNOC Gas is well positioned to benefit from robust long-term demand trends for global gas, whilst playing a critical role in driving decarbonisation in line with the UAE’s Net-Zero strategy.”

Subject to the completion of the offering, ADNOC Gas said it expects to pay dividends of US $3.25 billion for 2023, with the first half being paid out to shareholders in the fourth quarter of this year.

ADNOC Gas was set up to serve as a holding company of ADNOC Gas Facilities LLC and ADNOC Gas Operations and Marketing LLC as part of reorganisation of ADNOC’s gas business.

The ADNOC Gas listing was announced in November, with First Abu Dhabi Bank PJSC and HSBC Bank Middle East Limited appointed as Joint Global Coordinators. Abu Dhabi Commercial Bank PJSC, Arqaam Capital Limited, BNP PARIBAS, Deutsche Bank AG, London Branch, EFG-Hermes UAE Limited (acting in conjunction with EFG Hermes UAE LLC) and International Securities LLC are the joint bookrunners.