Abu Dhabi's Adnoc to sell 4% stake in gas unit

Abu Dhabi: Abu Dhabi’s National Oil Company (Adnoc) plans to raise up to $3 billion by selling a 4 percent stake in its unit, Adnoc Gas. The company explained in a statement that the sale is expected to increase Adnoc Gas’ free float, enhance liquidity, and provide a clear pathway to MSCI and FTSE indexation.

Adnoc will sell about 3.1 billion shares in the offering, which is expected to close on Friday, it said in a statement, adding that AdnGas could hold a series of meetings with institutional investors ahead of the offer's closing.

The Offering will commence immediately and is expected to close on February 21, subject to acceleration of closing at Adnoc sole discretion. Adnoc is the current majority shareholder of 90 per cent of the ordinary shares in Adnoc Gas.

Khaled Al Zaabi, Group Chief Financial Officer at Adnoc said, “Since its IPO in March 2023, Adnoc Gas has consistently delivered strong growth, robust financial performance and superior shareholder returns. As a world-class integrated gas processing company, Adnco Gas is ideally positioned for further expansion as the company will continue to supply a majority of the domestic market, while pursuing an ambitious growth strategy.”

He added, “As a committed, long-term majority shareholder, this Offering aligns with Adnoc's strategic objectives to enhance the liquidity and free float of Adnoc Gas, while providing a pathway to a more diversified shareholder base and indexation through this secondary placement.”

This may be the biggest share sale in the Middle East and North Africa (MENA) region since the $12.3 billion follow-on offering by Saudi Aramco in June, and one of the largest in recent years.

Adnoc said the offering will be subject to a customary 180-day lock-up for Anoc and Adnoc Gas, subject to certain exceptions and unless waived by the Joint Global Coordinators.

“The Offering is being conducted to enhance trading and liquidity in Adnoc Gas’ ordinary shares and diversify its shareholder base,” it said.

BofA Securities, Citi, EFG-Hermes, First Abu Dhabi Bank, HSBC and International Securities are acting as Joint Global Coordinators and Joint Bookrunners for the Offering.