Adnoc To Sell 4% Of Its Gas Unit To Raise Up To $3Bn

Abu Dhabi National Oil Company is to offer approximately 3.1 billion shares in its subsidiary Adnoc Gas, in what will be the biggest share sale in the Middle East and North Africa since Saudi Aramco’s offering last June.

The sale will represent 4 percent of Adnoc’s outstanding share capital and Reuters estimates that it could raise up to $3 billion for the energy giant.

The offering is expected to close on Friday and the final price will be set after the bookbuilding process.

The shares will be available to institutional investors and the company believes the listing could provide a pathway for its inclusion in the MSCI and FTSE emerging market indices.

Adnoc’s gas unit became operational at the start of 2023 as the state oil giant consolidated its gas processing, LNG and industrial gas operations into one entity.

The Adnoc Gas initial public offering in March 2023 raised about $2.5 billion and reduced Adnoc’s stake to 90 percent.

Adnoc Gas was trading at AED3.58 on the Abu Dhabi Securities Exchange on Thursday. Its price has risen by just over 50 percent since the IPO. It is up 2 percent in the year to date.

Adnoc Gas has reported solid financial results since listing, including a 13 percent growth of its adjusted net income to $5 billion for 2024. 

The company also says it is on track with its growth strategy, including the planned acquisition of Ruwais LNG and a target to achieve a 40 percent increase in adjusted EBITDA by 2029.