Adnoc to up stake sale in gas business IPO to 5%

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Abu Dhabi National Oil Co will increase the stake in its gas business being offered in an initial public offering to five from four percent, the state oil giant said on Monday.

Adnoc made the decision to increase the stake in the Adnoc Gas offering “based on significant investor demand across all tranches,” it said in a statement.

The decision was also made to create a “supportive trading environment for the company’s stock post-admission,” it added.

As a result, the retail tranche has been increased from 10 to 12 percent of the offering.

Adnoc also raised the tranche reserved for employees and UAE national retirees of Adnoc Group companies residing in the country to four from two percent.

The remaining 84 percent of the offering has been reserved for institutional investors.

Adnoc is selling roughly 3.84 billion shares in its gas business, equivalent to about five percent of its issued share capital.

The price range for Adnoc Gas was set last week at AED2.25 ($0.61) to AED2.43.

Vijay Valecha, chief investment officer at Century Financial, told AGBI earlier this month that Abu Dhabi government-backed Adnoc Gas was “a robust business” and would attract a lot of interest from large-scale international investors.

“We could see a new set of investors making their presence felt in UAE,” he said.

Under group CEO Sultan Al Jaber, who was named last month as president of the Cop28 climate change summit, Adnoc has also drawn up a roadmap to decarbonise its operations by 2050.

“This is the best time to list a gas-focused business in the markets. There is now a broad consensus that the path to a carbon-free future is not straightforward, and natural gas can act as a bridge during the transitionary period. Adnoc Gas is well-positioned to capitalise on this trend,” Valecha said.