ADNOC increases ADNOC Gas IPO size
State-owned ADNOC has increased the size of the initial public offering (IPO) of its gas unit, ADNOC Gas, it said on February 27. ADNOC will now sell 3.84bn shares or 5% of ADNOC Gas instead of the 4% previously announced.
“The decision to increase the size of the IPO is based on significant investor demand across all tranches,” ADNOC said. ADNOC last week set a price range for the IPO between 2.25 dirhams ($0.6126) and 2.43 dirhams/share, valuing the company between $47bn and $50.8bn.
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The retail portion has been increased from 10% to 12% of the IPO while the tranche reserved for employees and UAE national retirees of ADNOC Group companies residing in the country to 4% from 2%. The remaining 84% of the offering has been reserved for institutional investors. The size of the IPO now will be approximately $2.4bn to $2.5bn. The final offer price is expected to be announced on March 3.
ADNOC had in January announced the formation of ADNOC Gas. The new entity will undertake processing, operations and marketing of natural gas. It combines the operations, maintenance and marketing of the ADNOC Gas Processing and ADNOC LNG businesses into one consolidated business.