Monday 27 February 2023

Adnoc Gas IPO Upsized to About $2.5 Billion on Heavy Demand - Bloomberg

Adnoc Gas IPO Upsized to About $2.5 Billion on Heavy Demand - Bloomberg

The United Arab Emirate’s main oil company has increased the size of the initial public offering of its gas business — already set to be the world’s largest so far this year — by a quarter to as much as $2.5 billion.

The move comes after investors snapped up all available shares within hours of them going on sale last week. Abu Dhabi National Oil Co. will now offer 3.84 billion shares, or a stake of about 5%, in Adnoc Gas in the IPO, according to a statement on Monday. It was previously looking to sell 4%.

The price range remains unchanged at 2.25 dirhams ($0.61) to 2.43 dirhams per share, valuing the company at as much as $50.8 billion. The retail offering was boosted to 12% of the total deal while the employee tranche was increased to 4%.

There has been “significant investor demand across all tranches,” Adnoc Gas said. The Middle East had experienced increased investor interest last year on the back of its IPO boom which bucked a global slowdown and a surge in energy prices following Russia’s invasion of Ukraine.

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