The sun rises over the headquarters of ADNOC, which dominates the skyline of Abu Dhabi, United Arab Emirates. (AP Photo/Kamran Jebreili, File)
DUBAI, United Arab Emirates – Abu Dhabi National Gas Co said it expects to raise as much as $2 billion by selling a 4 percent stake in an initial public offering.
The price range for the previously announced sale of more than 3 billion shares has been set at AED 2.25 to AED 2.34, valuing the company at up to $50.8 billion, the company said. The subscription period opened on Thursday and final offers are expected to be announced on March 3.
ADNOC owns 95% of the UAE’s natural gas reserves, ranking seventh in the world. Its natural gas division, called ADNOC Gas, supplies more than 60% of the local market and exports to more than 20 countries.
The gas company’s net income for the first 10 months of 2022 was $4.2 billion, up from $3.6 billion for all of 2021.
A similar IPO in 2019 by Saudi Arabia’s state oil giant Aramco raised about $30 billion.
ADNOC’s chief executive, Sultan al-Jaber, who also oversees renewable energy projects in the United Arab Emirates, has angered climate change activists by being chosen to chair this year’s COP28 U.N. climate talks.
Oil and gas are fueling the UAE’s rapid transformation into a high-tech global business hub for futuristic cities like Dubai and Abu Dhabi, and the world’s busiest airport for international flights. Analysts believe the UAE is trying to maximize profits as the world increasingly turns to renewable energy.
The UAE says it has invested more than $50 billion in renewable energy projects in 70 countries and plans to invest another $50 billion over the next decade. It’s also vowed to be carbon neutral by 2050, though it’s unclear how it will achieve that.