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DUBAI, Feb 16 (Reuters) – Abu Dhabi National Oil Company (ADNOC) plans to list 4 percent of its gas business in an initial public offering, two sources told Reuters on Thursday.
The state-owned oil major made the decision to buy ADNOC Gas ahead of the official announcement of the IPO expected on Friday, the sources said. The sources declined to be named as the matter is private. ADNOC declined to comment.
Sources told Reuters last month, ADNOC is considering valuation Its natural gas business needs at least $50 billion, according to Reuters calculations, which would translate into about $2 billion in IPO proceeds.
ADNOC was keen to launch the deal before market activity slowed during the Muslim holy month of Ramadan, which began in late March, sources said at the time.
The company announced in November that it would merge its natural gas processing unit and liquefied natural gas (LNG) subsidiary into a publicly traded entity.
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.
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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.
Reporting by Hadeel Al Sayegh; Editing by Susan Fenton and Jan Harvey
Our standards: Thomson Reuters Trust Principles.
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