Mideast Stocks: #AbuDhabi gains ahead of Adnoc Gas IPO, #Dubai weighed by ex-dividend stocks

Mideast Stocks: Abu Dhabi gains ahead of Adnoc Gas IPO, Dubai weighed by ex-dividend stocks

Stocks in Abu Dhabi gained on Friday after flagship oil firm Abu Dhabi National co, also known as Adnoc, set the price of its gas business IPO near the top-end of the range, although Dubai bucked the trend. Abu Dhabi National Oil Co on Friday set the final price for Adnoc Gas' IPO at 2.37 dirhams per share, valuing the company at about $50 billion.

Adnoc Gas will raise roughly $2.5 billion out of an order book that topped $124 billion, making it the largest IPO in Abu Dhabi. The company is expected to begin trading on March 13.

In Abu Dhabi, the index advanced 0.4%, extending gains to the fourth session, as UAE's largest listed firm, International Holding Company jumped 1.3%, while Marine Construction firm National Marine Dredging Company climbed 2%. Among gainers, Adnoc Drilling Company rose 2.4% after the firm signed an agreement to purchase 10 newbuild hybrid power land drilling rigs for $252 million.

Sentiment in Abu Dhabi's markets could lean on the bright side, thanks to improving activity in non-oil sectors as well as the success of Adnoc Gas’ IPO, said Fadi Reyad, Chief Market Analyst at CAPEX.com MENA.

Dubai's main market index, however, settled 0.5% lower, dragged by losses in banking sector stocks. Top lender Emirates NBD Bank plunged 4.1% and Mashreqbank tumbled 5.3% as both stocks were trading ex-dividend. Separately, the United Arab Emirates' economy expanded 7.6% last year, a senior official said on Thursday, about double the rise in gross domestic product (GDP) recorded in 2021 as the Gulf state rebounded sharply from the Covid-19 pandemic.