UAE’s ADNOC Gas sets share price as part of new IPO

The United Arab Emirates’ (UAE) ADNOC Gas on Thursday announced its price range for the four percent of its shares in the company that it plans to make available for the public, state news agency WAM reported.

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Abu Dhabi National Oil Company (ADNOC Gas) plans to sell just over three million shares in its company as part of its Initial Public Offering (IPO) on the Abu Dhabi Securities Exchange (ADX).

The company set the price range between $0.61 (AED2.25) and $0.66 (AED2.43) per share, WAM added.

If all the shares are sold, the IPO will be approximately $1.9 billion to $2 billion (AED6.9 billion to AED7.5 billion), with the final offer price expected to be announced on March 3. Shares which have been put on the ADX on Thursday will stay there until March 2, according to WAM.

An IPO refers to the process of offering shares of a private company to the public in a new stock issuance for the first time. An IPO allows a company to raise equity capital from public investors. Trading of the shares is slated to 10 days later, Bloomberg reported earlier in February.

The deal should give ADNOC Gas a valuation of at least $50 billion, according to people familiar with the matter, Bloomberg also said.

This would make it one of the world’s biggest listed gas firms and roughly on a par with Eni SpA and Occidental Petroleum Corp.The IPO is part of a drive by energy-rich Arabian Gulf nations to fund the diversification of their economies and open their stock markets more to international investors.

High oil and gas prices helped the region — especially the UAE and Saudi Arabia — buck a global IPO slump last year, and more listings are expected in the coming months.

Oman plans to raise as much as $244 million from the IPO of a state oil-drilling unit, Abraj Energy. The offering starts on Monday, three days before ADNOC Gas.

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