Abu Dhabi’s ADNOC looks to raise up to $2bn in IPO for gas unit

DUBAI, Feb 23 (Reuters) – National oil major Abu Dhabi National Oil Co (ADNOC) said on Thursday it had set a price range for an initial public offering (IPO) of its gas unit, which could Raising up to $2 billion and valuing ADNOC Gas’s equity at $47 billion to $50.8 billion.

The price range for the unit it created in November by merging its gas processing and liquefied natural gas subsidiaries was set at AED 2.25 ($0.6126) to AED 2.43 per share, the company said in a statement.

Cornerstone investors Abu Dhabi Pension Fund, Alpha Wave Ventures II, IHC Capital Holding, OneIM Fund I and entities eventually controlled by ADQ and the Emirates Investment Authority have committed around $850 million, it added.

ADNOC is selling approximately 3 billion shares in its natural gas business, equivalent to approximately 4% of its issued capital.

At the upper end of that range, ADNOC would raise about $2 billion from the sale, according to Reuters calculations.

A final offer is expected to be announced on March 3 and trading in the listing is expected to begin on March 13, the company said.

ADNOC is stepping up its focus on the gas market as Europe seeks to replace all Russian energy imports as early as mid-2024 as supplies dwindle following Western sanctions against Ukraine over its invasion.

According to Dealogic, Middle Eastern companies will raise about $21.9 billion in IPOs in 2022, more than half of the total in the broader EMEA region, which includes Europe and Africa.

ADNOC has listed petrochemical company Borouge in the past two years (Borouge.AD)fertilizer and cleaning ammonia products manufacturer Fertiglobe (FERTIGLOBE.AD)and ADNOC Drilling (ADNOCDRILL.AD). It also plans to float its logistics and services division.

($1 = 3.6727 United Arab Emirates dirhams)

Reporting by Hadeel Al Sayegh; Editing by Christian Schmollinger and Jamie Freed

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