Filling Up on Profits

Filling Up on Profits

Share this article


  • Abu Dhabi’s state-owned Adnoc is planning to increase its initial public offering (IPO) of Adnoc Gas from 4% to 5%, due to high demand across all tranches. This comes ahead of the IPO that is expected to take place next month, making it the UAE’s first IPO for 2023. Of the shares on offer, 12% will be available to retail investors, 4% will be for employees and retired UAE nationals, and 84% will be reserved for institutional investors.

  • The indicative price range will remain at 2.25-2.43 dirhams per share ($0.61-$0.66/share), but Adnoc is now planning to sell up to 3.84 billion shares, compared to 3 billion previously. The listing will be on the Abu Dhabi Securities Exchange, and Adnoc could raise up to $2.54B at the top end of the price range. The company aims to boost its share of the European gas market as the continent seeks alternatives to Russian imports.

Why it matters

Addnoc is expanding its presence in the gas market amid Europe's efforts to find alternatives to Russian energy imports, which could be fully replaced by mid-2024 following supply cuts due to Western sanctions over Moscow's invasion of Ukraine. According to data from Dealogic, Middle Eastern companies generated over $21.9 billion in proceeds through IPOs in 2022, which made up more than half of the total for the larger EMEA region, comprising Europe and Africa.

akbaraka

Get Smarter
About Investing

Join 35,000+ subscribers and get our 5 min daily newsletter on daily local and international financial news.
akhbaraka
Get Smarter<br/> About Investing

Similar News