Adnoc said in a statement that the offering of 3.1 billion ordinary shares in Adnoc Gas represents 4 percent of the issued and outstanding share capital of the company.
According to Adnoc, the offering saw “exceptional” demand from institutional investors in the GCC and internationally, with a total oversubscription of 4.4x.
It was priced at 3.40 dirhams per share, about 43 percent above the initial public offering ( IPO) price of 2.37 dirhams per share.
The state-owned firm retains a majority 86 percent stake in Adnoc Gas and has also agreed to a restriction from selling further shares for a period of six months.
“Adnoc is proud to have completed the first-ever marketed offering in the UAE and the largest placement on the ADX to date,” Khaled Al Zaabi, Adnoc CFO said.
“The exceptional demand and competitive discount provided by the international and domestic investor community reflects the strong confidence in Adnoc Gas’ track record and growth prospects,” he said.
Adnoc noted that a higher free float is also expected to provide a pathway towards inclusion in the Morgan Stanley Capital International (MSCI) Emerging Market Index and the Financial Times Stock Exchange (FTSE) Emerging Market Index, which may take place at the next quarterly review, subject to Adnoc Gas meeting all the relevant inclusion criteria.
Index inclusion of Adnoc Gas would contribute to the diversification of the company’s investor base and significantly broaden awareness of its value proposition, Adnoc said.
LNG business
Adnoc noted that Adnoc Gas has continued to deliver consistent growth and profitability, generating an adjusted net income of $5 billion, the highest since its IPO, in 2024.
Total sales volumes in FY 2024 increased by 2 percent to 3,616 million MMBTU.
Moreover, this increase in volume was enabled by a 13 percent increase in the Adnoc LNG (ALNG) joint venture contribution.
Adnoc owns a 70 percent stake in Adnoc LNG, which currently produces about 6 mtpa of LNG from its facilities on Das Island.
Besides the Das Island facility, Adnoc is building its second LNG terminal in the UAE.
Adnoc Gas said in November 2024 it expects to splash about $5 billion to buy a 60 percent operating interest from its parent Adnoc in the 9.6 mtpa Al Ruwais LNG export plant.
The LNG project will more than double Adnoc’s existing UAE LNG production capacity to around 15 mtpa, as the company builds its international LNG portfolio.
Adnoc is also expanding its international LNG presence. Last year, the firm purchased a stake in the first phase of NextDecade’s Rio Grande LNG export terminal in Texas.
