ADNOC to Offer 4% of Adnoc Gas in IPO on the Abu Dhabi Securities Exchange

The Abu Dhabi National Oil Company, ADNOC, is offering its gas processing firm in an initial public offering on the Abu Dhabi Securities Exchange. The state-owned enterprise is planning to sell 4% of its shares in the gas processing and marketing unit, Adnoc Gas. A price determination based on the offer price range will be made on the first day of the offer period. This period begins on February 23rd, for the first and second tranches. On March 1st, ADNOC will close its doors to investors such as ADNOC employees living in the UAE, retail investors, and individual investors. Other qualified investors like corporations will have an extra day. The listing data is expected to be on the 13th of March the opening bell on ADX.

Abu Dhabi National Energy Company, Taqa, has been offered 5% of Adnoc Gas by its parent company Adnoc. With this move, Adnoc Gas will be left with 91% control of the company including the 4% stake for the IPO. The company also plans to reduce its dividend payout by 5% from 2024 to 2027 and currently plans to pay $3.25 billion to shareholders.

Adnoc Gas was founded in 1975 from the amalgamation of the operations, maintenance, and marketing of Adnoc Gas Processing and Adnoc LNG into one consolidated entity by the parent company ADNOC. It supplies almost 60% of the country’s gas needs and has access to 95% of the UAE’s natural gas reserves. In order to grow, the company plans to open eight new sites, which will increase regional opportunities.