ADNOC completes $2.84 bn marketed offering of ADNOC Gas shares

Abu Dhabi National Oil Company (ADNOC) announced on Friday the final offer price and successful completion of the marketed offering to institutional investors of 3.1 billion ordinary shares in ADNOC Gas plc.

This represents 4 per cent of the issued and outstanding share capital of ADNOC Gas and will increase the company’s free float by 80 per cent (to headline 9 per cent).

The offering saw exceptional demand from institutional investors in the GCC and internationally, with a total oversubscription of 4.4x and was priced at AED3.40 per share, approximately 43 per cent above the Initial Public Offering (IPO) price of AED2.37 per share, and represents a competitive 5 percent discount to the company’s closing share price of AED3.58 on February 20, being the last trading day ahead of the offering.

The offering raised gross proceeds of approximately $2.84 billion (equivalent to approximately AED10.4 billion). Settlement of the offering is expected to occur on or around February 26.

ADNOC Gas has continued to deliver consistent growth and profitability as evidenced by the company’s full year 2024 financial results, generating an adjusted net income of $5 billion (the highest since its IPO), with a net income of $1.38 billion in the fourth quarter of 2024, in each case significantly ahead of the applicable Bloomberg consensus.

This strong 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 per cent adjusted EBITDA growth by 2029.

ADNOC Group will continue to retain a majority 86 per cent 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, subject to certain exceptions and unless waived by the Joint Global Coordinators.

A higher free float is also expected to provide a pathway towards inclusion in the Morgan Stanley Capital International (MSCI) Emerging Market Index and the Financial Times Stock Exchange (FTSE) Emerging Market Index, which may take place at the next quarterly review, subject to ADNOC Gas meeting all the relevant inclusion criteria.

Index inclusion of ADNOC Gas would contribute to the diversification of the company’s investor base and significantly broaden awareness of its value proposition.

BofA Securities, Citi, EFG-Hermes, First Abu Dhabi Bank, HSBC and International Securities acted as Joint Global Coordinators and Joint Bookrunners for the offering.