ADNOC Gas has fixed its initial public offering (IPO) price at AED2.37 ($0.65), implying a market capitalisation of approximately AED183 billion ($50 billion).
The final offer price means the total offering size is approximately $2.5 billion (AED9.1 billion), making it the largest-ever listing on the Abu Dhabi Securities Exchange. ADNOC Gas has surpassed the previous record of another ADNOC group company, Borouge, which raised close to $2 billion in June 2022.
The company has confirmed that the increased offering size of 3,837,571,100 ordinary shares, (raised from previously-announced 4 percent to approximately 5 percent of the company’s total issued share capital), has been fully allocated.
The price range for the IPO was set between AED2.25 to AED2.43 per share, meaning that the final priced towards the top end, following significant demand from both local and international investors.
The bookbuilding process was oversubscribed above 50 times, generating orders of over AED450 billion ($124 billion) in aggregate.
Khaled Al Zaabi, Group CFO of ADNOC, commented: “ADNOC is delighted with the unprecedented demand for ADNOC Gas shares from the UAE retail investors as well as the local and global institutional investor community, and we are extremely proud that this IPO witnessed record demand for a UAE and MENA region IPO, with ADNOC Gas being the largest-ever market debut in Abu Dhabi and the largest IPO globally to date this year.
“This truly historic listing is the fifth company ADNOC has successfully brought to market in as many years, with the unparalleled level of investor interest reinforcing both the attractiveness of ADNOC’s world-class and low-carbon intensity energy asset base, and cementing Abu Dhabi’s leading position as a go-to destination of global capital.
“ADNOC Gas is a highly attractive value proposition and underpins ADNOC’s key role as a catalyst and critical enabler of domestic economic growth and the diversification of the UAE financial marketplace.”
Admission is expected to take place at 10:00 AM on 13 March 2023, subject to customary closing conditions, under the ticker symbol ‘ADNOCGAS’.
ADNOC will continue to own a majority 90 percent stake.
Cornerstone investors include Abu Dhabi Pension Fund, Alpha Wave Ventures II, LP, IHC Capital Holding LLC, OneIM Fund I LP, and entities ultimately controlled by ADQ and the Emirates Investment Authority. They will not offer, sell or announce an offer of any shares they have acquired under the Cornerstone Investment Agreements for a period of 12 months following Admission.
The size of the First Tranche of the offering was set at 12 percent; the size of the Second Tranche (reserved for investors in the Qualified Investor Offering) was set at 84 percent. The size of the Third Tranche (reserved for employees of ADNOC Group) was set at 4 percent.
UAE retail investor subscription amounted to more than $23 billion (58 times oversubscribed), thus becoming the largest-ever demand for retail tranches in a MENA IPO to date. These retail investors will receive an SMS confirmation of their respective allocation on 8 March 2023.
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