Abu Dhabi National Oil Company (ADNOC) recently revealed the finalized offer price and the successful completion of the marketed offering to institutional investors of 3.1 billion ordinary shares in ADNOC Gas. This translates to 4 percent of the issued and outstanding share capital of ADNOC Gas and is set to boost the company’s free float by 80 percent (to a headline 9 percent), according to a statement.
The offering experienced remarkable demand from institutional investors within the GCC and globally, achieving a total oversubscription of 4.4x. It was priced at AED3.40 per share, roughly 43 percent above the Initial Public Offering (IPO) price of AED2.37 per share, and represents a competitive 5 percent discount to the company’s closing share price of AED3.58 on February 20, 2025, the last trading day prior to the offering. The offering generated gross proceeds of approximately $2.84 billion (equivalent to about AED10.4 billion). Settlement of the offering is anticipated to take place on or around February 26, 2025.
Read more: ADNOC Gas awards $2.1 billion in contracts to enhance Ruwais LNG supply infrastructure
Financial performance and growth strategy
ADNOC Gas has consistently demonstrated growth and profitability, as highlighted by the company’s full-year 2024 financial results, which showcased an adjusted net income of $5 billion (the highest since its IPO), including a net income of $1.38 billion in the fourth quarter of 2024, both significantly surpassing the applicable Bloomberg consensus.
This robust performance aligns with the company’s latest strategy update (announced in November 2024), which details ADNOC Gas’ renewed growth pipeline, including the planned future acquisition of Ruwais LNG and its progress toward achieving over 40 percent adjusted EBITDA growth by 2029. ADNOC Group will maintain a majority 86 percent shareholding in the company and has agreed to a six-month restriction on selling further shares from the closing of the offering, with specific exceptions unless waived by the Joint Global Coordinators (as defined below).
Khaled Al Zaabi, group chief financial officer at ADNOC, stated: “ADNOC is proud to have completed the first-ever marketed offering in the UAE and the largest placement on the ADX to date. 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. As a dedicated, long-term majority shareholder, ADNOC will continue to support ADNOC Gas, which is integral to Abu Dhabi and ADNOC’s decarbonization and growth ambitions. We extend a warm welcome to our new investors in ADNOC Gas, as the company continues to create value for its broader shareholder base, providing enhanced liquidity and indexation related catalysts.”
Future prospects and index inclusion
An increased free float is also expected to pave the way for inclusion in the Morgan Stanley Capital International (MSCI) Emerging Market Index and the Financial Times Stock Exchange (FTSE) Emerging Market Index, which may occur at the next quarterly review, contingent upon ADNOC Gas meeting all relevant inclusion criteria. Inclusion in these indices would help diversify the Company’s investor base and significantly enhance awareness of its value proposition.
BofA Securities, Citi, EFG-Hermes, First Abu Dhabi Bank, HSBC, and International Securities acted as joint global coordinators and joint bookrunners for the offering.
