ADNOC Sells 3.1 Billion Shares, Raise $2.84 Billion

Abu Dhabi National Oil Company (ADNOC) on Friday announced the final offer price and successful completion of the marketed offering of 3.1 billion shares to institutional investors in ADNOC Gas raising around $2.84 billion.

This represents 4% of the issued and outstanding share capital of ADNOC Gas and will increase the company’s free float by 80% (to headline 9%), ADNOC said in a regulatory filing with the Abu Dhabi Securities Exchange (ADX) this morning.

The marketed offering saw exceptional demand from institutional investors in the GCC and globally, with a total oversubscription of 4.4x and was priced at $0.93 per share, approximately 43% above the Initial Public Offering (IPO) price of $0.65 per share, and represents a competitive 5% discount to the company’s closing share price of $0.97 on 20 February 2025, being the last trading day ahead of the Offering, whose settlement is expected to take place around 26 February 2025.

ADNOC Gas has delivered consistent growth and profitability as evidenced by the company’s full year 2024 financial results, generating 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% 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 closing of the Offering, subject to certain exceptions and unless waived by the Joint Global Coordinators as defined below.

Largest Placement on ADX                  

ADNOC Group’s Chief Financial Officer Khaled Al Zaabi said that the company has completed the first-ever marketed offering in the UAE and the largest placement on the ADX to date. The exceptional demand and competitive discount provided by the international and domestic investor community reflected the strong confidence in ADNOC Gas’ track record and growth prospects.

“As a dedicated, long-term majority shareholder, ADNOC will continue to support ADNOC Gas, which is integral to Abu Dhabi and ADNOC’s decarbonisation and growth ambitions. We extend a warm welcome to our new investors in ADNOC Gas, as the company continues to create value for its broader shareholder base, providing enhanced liquidity and indexation related catalysts,” he said.

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.

This will be 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.