ADNOC will continue to reign supreme on ADX, with its gas division all set to take over the mantle of biggest listing from another group entity, Borouge. Image Credit: Supplied

Dubai: As expected, ADNOC Gas has set the final IPO price on the higher side of its range,  at Dh2.37 per share. It had set the range at Dh2.25-Dh2.43 earlier. The book-building generated orders of Dh450 billion (or over $124 billion).

The Dh2.37 a share implies a market cap (at the time of listing on ADX) of around $50 billion, or approximately Dh182 billion. The decision to price closer to the top of the range followed 'significant demand from both local and international investors'.

It is already the biggest IPO anywhere in the world so far this year, and demand for the retail offering alone amounted to more than $23 billion. That is over 58 times oversubscribed - the highest-ever for 'retail tranches in a MENA IPO to date'.

The total offer size will thus be around $2.5 billion - or Dh9.1 billion. "This confirms that, post-Admission, the IPO will be the largest-ever listing on the ADX, surpassing that of another ADNOC group company, Borouge plc,"  said a statement.

The bookbuilding generated orders of Dh450 billion (or over $124 billion). This implies an oversubscription of over 50 times. "We are extremely proud that this IPO witnessed record demand for a UAE and MENA region IPO, with ADNOC Gas being the largest-ever market debut in Abu Dhabi and the largest IPO globally to date this year," said Khaled Al Zaabi, Group CFO of ADNOC.

"This truly historic listing is the fifth company ADNOC has successfully brought to market in as many years, with the unparalleled level of investor interest reinforcing both the attractiveness of ADNOC’s world-class and low-carbon intensity energy asset base, and cementing Abu Dhabi’s leading position as a go-to destination of global capital.”

  1. Retail investors await the SMS
  2. Investors in the UAE retail offering will receive an SMS confirmation of their respective allocation on March 8.
  3. Total demand across the retail offer came to more than $23 billion. That is more than 58 times oversubscribed - the largest-ever for retail tranches in a MENA IPO to date.

Get set for ADX listing

Through the IPO, ADNOC Gas increased the offer size to 3.83 billion shares, or around 5 per cent of the Company’s total issued share capital. Admission to ADX is expected to take place at 10am on March 13.

"ADNOC Gas is a highly attractive value proposition, and underpins ADNOC’s key role as a catalyst and critical enabler of domestic economic growth and the diversification of the UAE financial marketplace," said Al Zaabi. "We welcome our broadest investor base yet to join ADNOC as we continue to deliver sustainable growth for Abu Dhabi, the UAE, and our shareholders."

Cornerstone heavyweights
The Abu Dhabi Pension Fund, Alpha Wave Ventures II, LP, IHC Capital Holding LLC, OneIM Fund I LP, and entities controlled by ADQ and the Emirates Investment Authority make up the 'cornerstone investors'. They will directly or indirectly, subscribe for 34 per cent of the ADNOC Gas IPO. These investors will not offer, sell or announce an offer of any shares they have acquired under the cornerstone investment Agreements for 12 months after the ADX admission.