Abu Dhabi to Sell 4% of Natural-Gas Business in IPO, Aims to Raise $2 Billion
Abu Dhabi National Oil Co. (Adnoc), the United Arab
Emirates' national energy company, is set to sell about 4% of its natural-gas
business in an initial public offering (IPO) in the hope of raising $2 billion.
The move comes as Middle East energy producers are ramping up plans to supply
Europe as it turns away from its traditional supplier, Russia.
Adnoc Gas, which was formed earlier this year when Adnoc
combined its liquefied natural gas and gas-processing arms, will be selling
over 3 billion shares on the Abu Dhabi Securities Exchange on February 23.
Trading of shares is expected to begin on March 13. If the IPO raises $2
billion as hoped, it would be the largest on record in Abu Dhabi.
Natural gas is viewed as an important part of the future
energy mix with renewables and nuclear for Abu Dhabi, with Adnoc stating that
"natural gas is central to the energy transition." Khaled Al Zaabi,
acting group chief financial officer of Adnoc, said that the company sees
"natural gas as a growth market" and that "this transaction will
provide access to international investors to participate in the growth of the
natural-gas business."
After the IPO, Adnoc will own approximately 91% of the
shares, with all of them paid in full, while Abu Dhabi National Energy Co.
(Taqa) will own about 5%. Adnoc Gas has also announced plans to pay dividends
of $1.625 billion in the fourth quarter of 2023 for the first half of that
year, with a further payment of the same amount in the second quarter of 2024
for the second half of 2023.
The IPO is the latest in a series of mega listings across
the Gulf region, with Saudi Arabia and the U.A.E. leading the way. Both
countries are actively banking on high energy prices to take state-owned
companies public. Adnoc has already listed some of its subsidiaries over the
past couple of years, including Borouge, a petrochemicals company, and Adnoc
Drilling.
This IPO is expected to be a success due to Adnoc's
reputation and the growing demand for natural gas in Europe. It is also
expected to attract international investors to participate in the growth of the
natural-gas business.
