State-owned energy giant ADNOC announced today its intention to float about 4% of its gas business in an initial public offering on the Abu Dhabi Securities Exchange (ADX).
ADNOC Gas listing will be the first major IPO on the ADX in 2023 after a listing bonanza for markets in the GCC last year as issuers from both the public and private sectors raised funds amid robust investor demand.
The listing momentum is expected to continue this year as Abu Dhabi’s IPO fund shortlisted six private sector companies to potentially receive investment and advisory services for listing their shares on the ADX, Mohamed Al Shorafa, chairman of the Abu Dhabi Department of Economic Development, said in November.
ADNOC will sell more than three billion shares in its gas processing and marketing unit, ADNOC Gas. The offer price will be “determined based on the offer price range”, and will be announced on the first day of the offer period, which begins on February 23 for the first and second tranches.
The offer period for retail investors, including individuals, ADNOC employees residing in the UAE and Emiratis who retired from the group and who live in the country, will close on March 1. The second tranche for qualified investors is expected to close on March 2.
ADNOC Gas expects to list on the ADX on March 13, the company said.
In November, ADNOC approved plans to combine the operations, maintenance and marketing of ADNOC Gas Processing and ADNOC LNG into one consolidated entity. ADNOC Gas began operations on January 1.
With capacity of about 10 billion standard cubic feet of gas per day, ADNOC Gas aims to serve a wider range of domestic and international customers with an expanding portfolio of gas products.
