Abu Dhabi National Oil Company (ADNOC), the current majority shareholder of 90 percent of the ordinary shares in ADNOC Gas, announced today its intention to offer approximately 3.1 billion shares, or 4 percent of the issued and outstanding share capital of ADNOC Gas, through a marketed offering.
The offering will commence immediately and is expected to close on February 21, 2025, subject to acceleration of closing at ADNOC’s sole discretion. The group added that the offering will be subject to a customary 180-day lock-up for ADNOC and ADNOC Gas respectively, subject to certain exceptions and unless waived by the joint global coordinators.
“Since its IPO in March 2023, ADNOC Gas has consistently delivered strong growth, robust financial performance and superior shareholder returns. As a world-class integrated gas processing company, ADNOC Gas is ideally positioned for further expansion as the company will continue to supply a majority of the domestic market, while pursuing an ambitious growth strategy,” said Khaled Al Zaabi, group chief financial officer at ADNOC.
Offering open to qualified institutional and other investors
The offering will only be open to qualified institutional and other investors in a number of countries, including the UAE. The final number of shares to be placed and the offering price will be determined at the close of the bookbuild process in accordance with the Block Trade Rules of the Abu Dhabi Securities Exchange (ADX).
“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,” added Al Zaabi.
BofA Securities, Citi, EFG-Hermes, First Abu Dhabi Bank, HSBC and International Securities are acting as joint global coordinators and joint bookrunners for the offering.
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ADNOC Gas seeks diverse shareholder base
ADNOC is selling the 4 percent stake to enhance trading and liquidity in ADNOC Gas’ ordinary shares and diversify its shareholder base. 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 further contribute to the diversification of the company’s investor base and significantly broaden awareness of its value proposition within the international investment community.
The offering also supports ADNOC’s ongoing commitment to further enhance the Abu Dhabi equity capital market while generating sustainable returns for investors across its listed portfolio.
This announcement came after ADNOC Gas announced its full-year 2024 financial results, generating an adjusted net income of $5 billion, the highest since its IPO, with a net income of $1.38 billion in the fourth quarter of 2024.
