State-owned oil firm Abu Dhabi National Oil Company (ADNOC) said Thursday it would offer a 4% stake in its subsidiary—ADNOC Gas—through an initial public offering (IPO) at an offer price of $0.61 (AED 2.25) to $0.66 (AED 2.43) apiece on the Abu Dhabi Securities Exchange.
The company, which was formed in November last year, plans to offer 3.1 billion shares in its subsidiary Friday, according to a company statement, and the share offering is expected to raise roughly about $2 billion (AED 7.4 billion) at the top of the range.
The subscription period for retail investors is between February 23 and March 1, while the offer period for qualified investors will be between February 23 and March 2, 203, noted the statement. The statement said the final offer price would be determined through a book-building process, adding that the listing of shares is scheduled on March 13, 2023.
Last week, Abu Dhabi National Energy Company (TAQA) said it acquired a 5% stake in ADNOC Gas. TAQA, which came in 10th on Forbes Middle East’s Top 100 Companies in the Middle East 2022 list, is one of the largest integrated utility companies in the Europe, Middle East, and Africa (MENA) region with operations across 11 countries.
As part of its retail offer, ADNOC Gas will offer its shares to individuals and other investors in the UAE, employees of ADNOC group firms residing in the UAE, UAE nationals who retired from the ADNOC group and reside in the Gulf state. Similarly, it will offer shares to qualified institutional and other investors as part of the qualified investor offering.
ADNOC is expected to own approximately 91% stake in ADNOC Gas, which posted $21.1 billion (AED 77.5 billion) in revenues and a net profit of $4.2 billion (AED 15.4 billion) for the first 10 months ended October 2022, after the IPO.
