Abu Dhabi National Oil Company (ADNOC) has announced the final offer price and completion of the offering to institutional investors of 3.1 billion ordinary shares in ADNOC Gas.
The offering, which raised gross proceeds of approximately $2.84bn (equivalent to approximately AED10.4bn), saw strong demand from institutional investors in the GCC and internationally, with more than four-times oversubscription.
Shares were priced at AED3.40, approximately 43% above the Initial Public Offering (IPO) price of AED2.37 per share and represents a competitive 5% discount to the company’s closing share price of AED3.58 on 20th February. Settlement of the offering is expected to occur on or around 26th February 2025.
ADNOC Gas generated an adjusted net income of $5bn (the highest since its IPO) in 2024, with a net income of $1.38bn in the fourth quarter.
The performance is in line with the company’s most recent strategy update (announced in November 2024), outlining ADNOC Gas’ refreshed growth pipeline, including the planned future acquisition of Ruwais LNG and its progress in achieving its target of over 40% adjusted EBITDA growth by 2029.
ADNOC Group will continue to retain a majority 86% shareholding in the company and has also agreed to a restriction from selling further shares for a period of six months from the closing of the offering.
ADNOC Gas recently announced a 14-year sales and purchase agreement (SPA) with Indian Oil Corporation for the export of up to 1.2 million tonnes per annum (mtpa) of LNG. The agreement converts the previous Heads of Agreement between the parties into an SPA, with first deliveries to begin in 2026.
