According to ADX’s press release, Abu Dhabi National Oil Company PJSC (ADNOC) raised around $2.5B (equivalent to approximately AED 9.1B) by selling approximately 5% of ADNOC Gas’ total issued share capital in an IPO. The offering garnered an overwhelming response, with total demand exceeding $124B (equivalent to over AED 450B), oversubscribed by more than 50 times.
The international institutional investors (excluding UAE) also showed remarkable interest, with orders amounting to about $25B (equivalent to approximately AED 92B), which is approximately 10 times the total offering size.
The ADNOC Gas IPO has given both local and global investors a chance to own a share in a top-tier, large-scale gas processing company, which operates along the entire gas value chain. ADNOC Gas has access to almost all of the UAE’s natural gas reserves, which are the seventh largest worldwide, according to the press release.
Moreover, it supplies over 60% of the UAE’s sales gas demand, has a diverse customer base in more than 20 countries, and earned an adjusted revenue (as defined in the International Offering Memorandum) of $21.1B and net income of $4.2B for the ten months ended on 31 October 2022. The company is strategically positioned to benefit from the growing global demand for natural gas and is committed to future dividend payouts, the PR says.
The Company plans to distribute dividends of $1.625B in Q4 2023 for the first half-yearly period ended 31 December 2023 and an additional $1.625B in Q2 2024 for the second half-yearly period. It aims to boost its annual dividend target of $3.25B (equal to the yearly dividend for 2023) by 5% per year on a per-share basis between 2024 and 2027.
His Excellency Hisham Khalid Malak, Chairman of ADX, said: “ADNOC Gas’ highly successful IPO is not only testament to the company’s strong growth and value proposition, but also speaks to the strong confidence in the Emirate’s robust market fundamentals and status as a premier investment destination.”
ADNOC Gas is the fifth company that ADNOC has successfully brought to market, and the IPO’s outstanding achievement is the result of its ongoing value creation initiative. ADNOC has played a significant role in supporting the growth and development of the UAE economy and its capital markets. As part of this growth program, ADNOC will continue to find ways to expand its investor base and access to capital, as the PR states. This approach will give both domestic and foreign investors the chance to invest in ADNOC’s top-notch energy assets.
Ahmed Alebri, Acting Chief Executive Officer of ADNOC Gas, added: “As ADNOC Gas moves into life as a listed company, we remain focused on our clear growth strategy, underpinned by upstream capacity expansion, which will allow us to process and deliver increased volumes to customers, further enhancement of our product mix and ensuring we deliver for our growing number of international customers as demand for gas continues to increase.”
According to the aforementioned PR, ADNOC and ADNOC Gas have a steadfast dedication to achieving sustainable growth and long-term advantages for Abu Dhabi, the UAE, and their investors. Trading of ADNOC Gas’ shares on the ADX began at 10:00 AM (GST) on March 13, 2023, using the ticker symbol “ADNOCGAS” and ISIN “AEE01195A234”. Following the Admission, ADNOC controls about 90% of ADNOC Gas’ issued share capital.
Moelis & Company UK LLP DIFC Branch acted as the Independent Financial Advisor to the Company. First Abu Dhabi Bank PJSC and HSBC Bank Middle East Limited served as the Joint Global Coordinators for the ADNOC Gas IPO. Joint Bookrunners were Abu Dhabi Commercial Bank PJSC, Arqaam Capital Limited, BNP PARIBAS, Deutsche Bank AG, London Branch, EFG-Hermes UAE Limited (working in conjunction with EFG Hermes UAE LLC), and International Securities L.L.C.
Additionally, First Abu Dhabi Bank PJSC acted as the Lead Receiving Bank, while Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, and Al Maryah Community Bank served as the Receiving Banks. Moreover, the Offering has received a confirmation from the Shariah Supervision Committee of First Abu Dhabi Bank PJSC that it is in compliance with Shariah principles.
