ADNOC collects $2.84bn through 4% stake sale in ADNOC Gas

Abu Dhabi National Oil Company (ADNOC) has successfully completed a significant transaction, raising a total of $2.84 billion through the sale of a 4% stake in its subsidiary, ADNOC Gas. The move comes after ADNOC Gas’s initial public offering (IPO) on the Abu Dhabi Stock Exchange (ADX) in March 2023, a crucial step in ADNOC’s ongoing efforts to diversify its investor base and attract more capital into its energy sector.

This offering saw the sale of approximately 3.1 billion shares of ADNOC Gas, with each share priced at AED 3.40. This price marks a notable 43% increase from the original IPO price of AED 2.37 per share, indicating the growing investor confidence in ADNOC Gas’s future prospects. The transaction highlights a robust demand for shares in ADNOC Gas, reflecting the overall positive market sentiment towards the company and its continued potential in the energy market.

The offering was met with overwhelming interest from institutional investors, with the sale being oversubscribed by 4.4 times. This strong demand not only came from the Gulf Cooperation Council (GCC) region but also attracted international investors, demonstrating ADNOC’s growing appeal in the global market. As a result of the sale, ADNOC Gas’s free float has increased to 9%, while ADNOC continues to hold a controlling 86% majority stake in the subsidiary. This provides ADNOC with the flexibility to raise capital from external investors while maintaining significant control over the operations and direction of ADNOC Gas.

The proceeds from the sale are expected to be reinvested into ADNOC Gas’s strategic initiatives, including the planned acquisition of Ruwais LNG and other potential expansion projects. These initiatives are part of ADNOC Gas’s broader plan to grow its operations and expand its portfolio in line with ADNOC’s ambitious goals for 2029. The company is aiming for more than 40% growth in adjusted EBITDA by the end of the decade, and this capital injection will support these efforts by funding new acquisitions, expansion projects, and technology investments.


ADNOC’s decision to open up its subsidiary to public investment also aligns with its broader strategy of diversifying revenue streams and building a more sustainable business model. By offering a 4% stake to the market, ADNOC is increasing transparency and making ADNOC Gas more accessible to a wider range of investors, both regionally and globally. This move is part of a broader strategy within ADNOC’s energy portfolio to provide investors with opportunities in its various business units, including its natural gas, energy transition, and sustainability-related investments.

Furthermore, the success of this transaction underscores ADNOC’s strategic shift toward enhancing shareholder value and reinforcing the company’s position as a key player in the global energy market. This stake sale represents the largest such offering on the Abu Dhabi Stock Exchange to date, reinforcing the ongoing growth and influence of ADNOC in the UAE’s financial markets. As ADNOC continues to expand and diversify its portfolio, it is expected to leverage the capital raised from this transaction to support its long-term growth and strategic goals.

Overall, this $2.84 billion sale marks a significant milestone in ADNOC Gas’s journey as a publicly traded entity, and it signals ADNOC’s commitment to achieving its objectives of operational excellence and financial growth in the coming years. As the company progresses with its plans for increased growth and profitability, it will likely continue to attract international investor interest, further cementing its standing as a global energy leader.

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