Abu Dhabi’s national oil company, ADNOC, announced the launch of a share offering on Thursday, aiming to sell 4% of its ADNOC Gas business. This move is designed to increase liquidity and enhance the free float of ADNOC Gas, which was listed in 2023.
Currently, ADNOC holds 90% of ADNOC Gas. The company plans to offer around 3.1 billion shares through a marketed offering to institutional investors.
The offering is set to begin immediately and will close on February 21, 2025, although ADNOC has the option to speed up the process at its discretion.
The total number of shares being offered is 3,070,056,880, which represents 4% of ADNOC Gas’ issued share capital.
This move follows ADNOC’s successful IPO of its gas business in 2023, which raised $2.5 billion. The IPO was one of the largest in the region, with investor demand 50 times higher than the available shares. Total orders reached $124 billion.
Khaled Al Zaabi, ADNOC’s Group CFO, commented on the new sale, saying, “As a committed, long-term majority shareholder, this offering supports ADNOC’s goals to improve liquidity and the free float of ADNOC Gas. It also helps diversify the shareholder base and allows for indexation through this secondary placement.”
In addition to this offering, ADNOC has been reorganizing its business operations. At the end of 2024, the company launched XRG, a new firm focused on lower-carbon energy and chemicals investments. XRG’s enterprise value exceeds $80 billion, and it will concentrate on global investments in natural gas, chemicals, and clean energy solutions.
ADNOC plans to transfer some of its natural gas and green energy assets in the United States to XRG, according to ADNOC’s CEO, Sultan Al Jaber.
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