ADNOC Gas to float 4% of business in IPO

ADNOC Gas plc has announced its intention to proceed with an initial public offering (IPO) of 4 per cent of its business on the Abu Dhabi Securities Exchange (ADX).

The company announced it will sell 3,070,056,880 shares, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including the approval of the Admission from the Securities and Commodities Authority (SCA).

The first tranche subscription period for individual investors is expected to open on February 23 and is expected to close on March 1 and the second tranche, for institutional investors is expected to open on February 23 and is expected to close on March 2. The price range per share will be published on the offer opening date.

The completion of the Offering and Admission is currently expected to take place no later than March 13, with trading expected to begin on ADX on that day.

Details of the offering will be included in the Arabic and English language UAE Prospectus.

After the offering, ADNOC will own about 91 per cent of the shares, all of which will have been paid in-full, it said. Abu Dhabi National Energy Company, better known as Taqa, will own approximately 5 per cent.

ADNOC Gas was formed as part of the consolidation of the operations of ADNOC Gas Processing, ADNOC LNG and ADNOC Industrial Gas.  The company became operational on January 1 2023, responsible for operations, maintenance and marketing across ADNOC’s downstream gas processing, liquified natural gas (LNG) and industrial gases businesses.

According to the company, ADNOC Gas is focused on decarbonisation efforts and believes it is able to help drive the energy transition in the UAE. Important steps have been taken to reduce emissions intensity in the ADNOC Gas Business (such as zero carbon grid power and zero flaring as part of routine operations), and ADNOC Gas is planning further abatement initiatives.

ADNOC Gas is expected to be an important contributor to ADNOC's emissions reduction target, the company said.