Abu Dhabi’s ADNOC has completed a share sale in its gas business unit to the tune of $2.84 billion, making the placement the biggest share sale in the Middle East and North Africa after the secondary share offering of Aramco, Reuters reported.
The share placement was launched yesterday, with the size of the offering equal to 4% of ADNOC Gas’ capital. Two years ago, ADNOC raised $2.5 billion from the listing of its gas business unit in what was one of the biggest IPOs in the region in 2023. The IPO offering was 50 times oversubscribed, with investors placing orders for $124 billion in total.
Commenting on the additional sale of 4%, Khaled Al Zaabi, Group Chief Financial Officer at ADNOC, said, “As a committed, long-term majority shareholder, this Offering aligns with ADNOC's strategic objectives to enhance the liquidity and free float of ADNOC Gas, while providing a pathway to a more diversified shareholder base and indexation through this secondary placement.”
In addition to the listing of ADNOC Gas, the biggest oil producer in the UAE also recently set up a new investment company focusing on low-carbon business, chemicals, and natural gas. Dubbed XRG, the company was set up late last year with an enterprise value of some $80 billion. The company was planned to formally commence activities in the first quarter of 2025, focusing on transformational global investments that create value across natural gas, chemicals, and lower-carbon energy solutions, per the parent.
Soon after XRG was set up, ADNOC moved to its some of its natural gas assets in the United States along with alternative energy operations in the country. The Emirati company is partner of Exxon in what should become the world’s biggest ammonia and hydrogen production hub, in Texas, and an investor in NextDecade’s Rio Grande LNG project with an 11.7% stake and a 20-year deal for the supply of 1.9 million tons of liquefied gas annually.
By Irina Slav for Oilprice.com
