ADNOC Gas announces final offer price and record demand for IPO

ADNOC Gas, the worldclass integrated gas processing company, on Friday announced the final offer price for the shares offered by ADNOC in connection with ADNOC Gas’s initial public offering and listing on the ADX.

The final offer price for the shares in ADNOC Gas offered by ADNOC via the IPO has been set at AED 2.37 per share, implying a market capitalisation (at the time of admission) of ADNOC Gas of approximately $50 billion (equivalent to approximately AED 182 billion), the company said.

The announcement follows the successful conclusion of ADNOC Gas’ bookbuilding and public subscription process.

The price range for the IPO was previously set between AED 2.25 to AED 2.43 per share, meaning that the offering was priced towards the top end of the previously announced price range of the offering, following significant demand from both local and international investors.

Based on the final offer price, the total offering size is approximately $2.5 billion (equivalent to approximately AED 9.1 billion), ADNOC said – confirming that the IPO will be the largest-ever listing on the ADX. The previous largest listing on ADX was also another ADNOC group company, Borouge plc, which successfully listed on the ADX on June 3, 2022.

The bookbuilding process generated orders of more than $124 billion in aggregate from qualified institutional investors in a number of countries, including the UAE, and UAE retail investors, with an oversubscription level in excess of 50 times in aggregate.

Commenting on the historic bookbuild for a MENA IPO, Khaled Al Zaabi, Group CFO of ADNOC commented: “ADNOC is delighted with the unprecedented demand for ADNOC Gas shares from UAE retail investors as well as the local and global institutional investor community – and we are extremely proud that this IPO witnessed record demand for a UAE and MENA region IPO, with ADNOC Gas being the largest-ever market debut in Abu Dhabi and the largest IPO globally to date this year.”

According to Al Zaabi, the historic listing is the fifth company ADNOC has successfully brought to market in as many years, with the unparalleled level of investor interest reinforcing both the attractiveness of ADNOC’s worldclass and low-carbon intensity energy asset base, and cementing Abu Dhabi’s leading position as a goto destination of global capital.

“As the next landmark milestone in our ongoing value creation program, ADNOC Gas is a highly attractive value proposition, and underpins ADNOC’s key role as a catalyst and critical enabler of domestic economic growth and the diversification of the UAE financial marketplace. We welcome our broadest investor base yet to join ADNOC as we continue to deliver sustainable growth for Abu Dhabi, the UAE, and our shareholders,” he said.

ADNOC confirmed that the previously announced increased offering size of 3,837,571,100 ordinary shares, equivalent to approximately 5% of the company’s total issued share capital, has been fully allocated, resulting in gross proceeds of approximately $2.5 billion, the net proceeds of which will be received by ADNOC, upon settlement. The listing is expected to take place at 10.00 am GST on March 13 under the ticker symbol ADNOCGAS.

Upon admission, ADNOC will continue to own a majority 90% stake in ADNOC Gas. Abu Dhabi

Pension Fund, Alpha Wave Ventures II, LP, IHC Capital Holding LLC, OneIM Fund I LP, and entities controlled by ADQ and the Emirates Investment Authority will, in each case, subscribe for 34% of the offering through their IPO cornerstone investment agreements announced in February, ADNOC said.