February 21, 2025 [ADNOC]- Abu Dhabi National Oil Company (ADNOC) PJSC, announced today the final offer price and successful completion of the marketed offering (the “Offering”) to institutional investors of 3.1 billion ordinary shares in ADNOC Gas plc (“ADNOC Gas” or the “Company”) (ADX Symbol: ADNOCGAS / ISIN: AEE01195A234). 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%).
The Offering saw exceptional demand from institutional investors in the GCC and internationally, with a total oversubscription of 4.4x and was priced at AED 3.40 per share, approximately 43% above the Initial Public Offering (“IPO”) price of AED 2.37 per share, and represents a competitive 5% discount to the Company’s closing share price of AED 3.58 on 20 February 2025, being the last trading day ahead of the Offering. The Offering raised gross proceeds of approximately $2.84 billion (equivalent to approximately AED 10.4 billion). Settlement of the Offering is expected to occur on or around 26 February 2025.
ADNOC Gas has continued to deliver 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).
Khaled Al Zaabi, Group Chief Financial Officer at ADNOC, said: “ADNOC is proud to have 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 reflects 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 decarbonization 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.”
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, 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.
BofA Securities, Citi, EFG-Hermes, First Abu Dhabi Bank, HSBC and International Securities acted as Joint Global Coordinators and Joint Bookrunners for the Offering.
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