Abu Dhabi National Oil Co. (Adnoc) announced on Friday that it has successfully completed a $2.84 billion marketed offering in its ADNOC Gas unit. The offering, priced at Dh3.40 per share, marks the largest share sale in the Middle East and North Africa (MENA) region since Saudi Aramco’s $12.3 billion follow-on offering in June.
The state-owned energy giant sold 3.1 billion shares to institutional investors, representing 4% of ADNOC Gas’ total share capital. According to one of the bookrunners, demand for the share sale covered the entire offering range, underscoring strong investor interest.
ADNOC Gas began operations at the start of 2023 after Adnoc consolidated its gas processing, liquefied natural gas (LNG), and industrial gas divisions into a single entity. The company subsequently debuted on the Abu Dhabi Securities Exchange, raising approximately $2.5 billion in one of the region’s largest initial public offerings (IPOs) in recent years.
In November, Adnoc expressed confidence in ADNOC Gas’ long-term growth prospects, noting its “significant value creation potential.” However, the company had not disclosed plans for an additional share sale at the time, including its timing or size.
Leading global financial institutions, including BofA Securities, Citi, EFG Hermes, First Abu Dhabi Bank, HSBC, and International Securities, served as joint global coordinators and bookrunners for the offering.
This latest share sale follows Adnoc’s $935 million offering in May last year, when it sold a 5.5% stake in its drilling unit to institutional investors. The successful completion of both transactions highlights sustained investor interest in the UAE’s energy sector and Adnoc’s strategic efforts to enhance liquidity and broaden its shareholder base.
