ADNOC Gas has established its ultimate IPO price at AED 2.37 per share, which is at the higher end of the initial range it had set earlier at AED 2.25 – AED 2.43 per share. The book-building process resulted in an overwhelming response of orders, amounting to AED 50B (equivalent to over $124B).
With the set price of AED 2.37 per share, the market capitalization of ADNOC Gas at the time of its listing on ADX would be approximately AED 182B or $50B. The decision to price the shares closer to the upper end of the range was made due to significant demand from both local and international investors.
The IPO of the company has already become the biggest one in the world this year. The company offering itself received orders worth more than $23B, which is a record high for any MENA IPO retail tranche with an oversubscription of over 58 times.
Consequently, the total size of the offer is expected to be around $2.5B or AED 9.1B. A statement confirmed that this would make the IPO the largest-ever listing on ADX, surpassing the listing of Borouge plc, another company under the ADNOC group.
The book-building process of ADNOC Gas garnered orders exceeding AED 450B (equivalent to over $124B), indicating an oversubscription of over 50 times. Khaled Al Zaabi, the Group CFO of ADNOC, expressed his pride in this achievement, stating that the IPO had set records for the highest demand seen in a UAE and MENA region IPO. He further added that ADNOC Gas had become the biggest market debut in Abu Dhabi and the largest IPO worldwide so far this year.
ADNOC has successfully brought five companies to the market in the past five years, and the unparalleled level of investor interest in the ADNOC Gas IPO has reinforced the appeal of ADNOC’s world-class and low-carbon intensity energy asset base.
Furthermore, it has solidified Abu Dhabi’s status as a leading destination for global capital. The retail investors who participated in the offering can expect to receive SMS confirmations of their respective allocations on March 8th.
The total demand for the retail offer amounted to more than $23B, resulting in an oversubscription of over 58 times, the highest ever seen for retail tranches in a MENA IPO. The IPO increased the offer size to 3.83 billion shares, or approximately 5% of the company’s total issued share capital.
The listing on ADX is scheduled for March 13th at 10 am. Khaled Al Zaabi, the Group CFO of ADNOC, stated that ADNOC Gas is an attractive value proposition that highlights ADNOC’s crucial role as a catalyst and enabler of domestic economic growth, the diversification of the UAE financial marketplace, and sustainable growth for Abu Dhabi, the UAE, and its shareholders.
