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ADNOC values ​​its natural gas business at at least $50 billion – sources

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DUBAI, Jan 30 (Reuters) – Abu Dhabi National Oil Co’s (ADNOC) plans to list its gas business this quarter at a valuation of at least $50 billion, two sources familiar with the matter said, adding to the A deal has laid the groundwork for one of the most anticipated stock listings of the year.

The state-owned oil major announced in November that it would combine its gas processing unit and its liquefied natural gas (LNG) subsidiary into a listed entity.

ADNOC is considering a valuation of at least $50 billion for ADNOC Gas, but the review of the valuation has not been finalized and the company has yet to determine the size of the offering, the people said. private.

ADNOC Gas’ IPO could launch as early as February, before market activity slows during the Muslim fasting month of Ramadan, which began in late March, they said.

ADNOC declined to comment when contacted by Reuters.

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

With a valuation of $50 billion and above, ADNOC Gas would be roughly on par with Italian energy group Eni (ENI.MI)U.S. refiner Valero Energy (VLO.N) and US oil producer Occidental Petroleum (Oxygen.N).

Accelerated time frame leads Goldman Sachs (GS.N) and Bank of America (BAC.N) Two other sources said they would relinquish their role as lead managers on the listing.HSBC (HSBA.L) Has been appointed to work with First Abu Dhabi Bank (FAB.AD) In the deal, they said.

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

ADNOC CEO Sultan al-Jaber is leading its push into alternative energy, low-carbon fuels such as ammonia and hydrogen, as well as liquefied natural gas and chemicals, into a new business unit with upstream and downstream businesses.

The company launched a transformation strategy four years ago, including the monetization of assets, as part of Abu Dhabi’s plan to diversify its economy and attract foreign investment.

Over the past two years, ADNOC-listed petrochemical company Borouge (Borouge.AD)fertilizer and cleaning ammonia products manufacturer Fertiglobe (FERTIGLOBE.AD) and ADNOC Drilling (ADNOCDRILL.AD). It is preparing for an initial public offering logistics and services unit.

Reporting by Hadeel Al Sayegh; Editing by Ghaida Ghantous and Jacqueline Wong

Our standards: Thomson Reuters Trust Principles.

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