ByTsvetana Paraskova– Feb 20, 2025, 8:00 AM CST
Abu Dhabi’s national oil company ADNOC on Thursday launched a share offering of 4% of the capital of its ADNOC Gas business to boost liquidity and the free float of its gas unit which was listed in 2023.
ADNOC, which currently owns 90% of ADNOC Gas, announced its intention to offer approximately 3.1 billion shares through a marketed offering to institutional investors.
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The offering, which begins immediately and is expected to close on February 21, 2025, is subject to acceleration of closing at ADNOC’s sole discretion.
In the offer, ADNOC is making 3,070,056,880 shares in ADNOC Gas available, representing 4% of the issued and outstanding share capital of ADNOC Gas.
Two years ago, ADNOC raised $2.5 billion from the listing of its gas business unit in what was one of the biggest IPOs in the region in 2023.
The IPO offering was 50 times oversubscribed, with investors placing orders for $124 billion in total.
Commenting on the additional sale of 4%, Khaled Al Zaabi, Group Chief Financial Officer at ADNOC, said, “As a committed, long-term majority shareholder, this Offering aligns with ADNOC’s strategic objectives to enhance the liquidity and free float of ADNOC Gas, while providing a pathway to a more diversified shareholder base and indexation through this secondary placement.”
The Abu Dhabi energy giant has been busy reshuffling business units in recent months.
At the end of last year, the company pumping nearly all the oil of the UAE announced the launch of a new firm, XRG, an international lower-carbon energy and chemicals investment company with an enterprise value of over $80 billion.
Initially, XRG will focus on transformational global investments that create value across natural gas, chemicals, and lower-carbon energy solutions.
ADNOC is moving some of its natural gas and green energy assets in the United States into its XRG company, ADNOC chief executive Sultan Al Jaber said earlier this month.
By Tsvetana Paraskova for Oilprice.com
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