ADNOC to float 4% of its gas business in IPO - statement
DUBAI, Feb 17 (Reuters) - ADNOC will sell 4% of its gas business in an initial public offering (IPO), according to a newspaper notice and an emailed statement on Friday.
ADNOC Gas's offering is set to be open from Feb. 23 to March 2 for institutional investors, while retail investors can subscribe until March 1, according to the notice in the National newspaper and the statement.
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Shares are expected to begin trading on March 13.
ADNOC holds a 95% stake in ADNOC Gas, and prior to the offering, it transferred 5% of the share capital of ADNOC GAS to Abu Dhabi National Energy Company.
Following the IPO, ADNOC is expected to own roughly 91% of ADNOC Gas.
Should the deal go through, ADNOC Gas expects to target payments of dividends of $1.625 billion in the fourth quarter of this year for the first half of 2023, according to a ADNOC Gas intention to float document emailed on Friday.
ADNOC Gas plans to offer a further $1.625 billion in the second quarter of 2024 for the second half of 2023.
The company said it expects to "grow the annual target dividend amount from $3.25 billion by a growth rate of 5% per annum on a dividend per share basis over the period 2024-2027."
ADNOC is sharpening its focus on the gas market as Europe seeks to replace all Russian energy imports as early as mid-2024 after gradual supply cuts in the wake of Western sanctions imposed on the country over its invasion of Ukraine. Russia calls the invasion a "special operation".
Companies from the Middle East have raised about $21.9 billion through IPOs in 2022, more than half the total for the wider EMEA region, which also includes Europe and Africa, according to Dealogic data.
Over the past two years, ADNOC has listed petrochemicals company Borouge, fertilisers and clean ammonia products maker Fertiglobe, and ADNOC Drilling . It also plans to float its logistics and services unit. (Reporting by Hadeel Al Sayegh; Editing by Christian Schmollinger and Gerry Doyle)