Adnoc completes $2.84 billion offering of shares in gas unit

Abu Dhabi: Abu Dhabi-headquarted energy giant Abu Dhabi National Oil Co (Adnoc) said it has completed a $2.84 billion marketed offering in its gas unit - Adnoc gas.

The offering was priced at 3.40 dirhams per share, approximately 43 per cent above the IPO price of Dh2.37 per share, Adnoc said on Friday.

This represents 4 per cent of the issued and outstanding share capital of Adnoc Gas and will increase the company’s free float by 80 per cent (to headline 9 per cent), the statement explained.

According to Adnoc, the offering saw exceptional demand from institutional investors in the GCC and internationally, with a total oversubscription of 4.4 times. It also represents a competitive 5 per cent discount to the company’s closing share price of Dh3.58 on February 20, being the last trading day ahead of the Offering.

The settlement of the offering is expected to occur on or around February 26. This is 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, reported Reuters.

Adnoc Gas is the biggest supplier of liquefied natural gas in the UAE. It distributes most of the gas in the UAE, runs an offshore export terminal and will more than double capacity for global sales of liquefied natural gas from a plant being built on the Arabian Gulf coast. Adnoc took its gas subsidiary public in 2023, raising $2.5 billion. 

The company's performance is in line with its most recent strategy update (announced in November 2024), outlining Adnoc Gas’ refreshed growth pipeline, including the planned future acquisition of Ruwais LNG and its progress in achieving its target of over 40 per cent adjusted EBITDA growth by 2029.

Parent company Adnoc Group will continue to retain a majority 86 per cent shareholding in the Company and has also agreed to a restriction from selling further shares for a period of six months from closing of the offering.

Khaled Al Zaabi, Group CFO at Adnoc, said, “Adnoc is proud to have completed the first-ever marketed offering in the UAE and the largest placement on the ADX to date. The exceptional demand and competitive discount provided by the international and domestic investor community reflects the strong confidence in Adnoc Gas’ track record and growth prospects. "

He added, "As a dedicated, long-term majority shareholder, Adnoc will continue to support Adnoc Gas, which is integral to Abu Dhabi and Adnoc's decarbonization and growth ambitions."

 BofA Securities, Citi, EFG-Hermes, First Abu Dhabi Bank, HSBC and International Securities acted as joint global coordinators and joint bookrunners for the offering.