Before trading, please ensure that you fully understand the risks involved
- About Us
- Contact Us
Monday, March 13, 2023
Arabian Gulf Business Insight - Abu Dhabi’s Adnoc Gas shares up 18% on debut
Shares of Adnoc Gas rose 18 percent above its listings price, as the state-backed oil giant made its debut on the Abu Dhabi stock market on Monday.
The energy firm’s shares traded at AED2.8 ($0.7625), versus its initial public offering (IPO) price of AED2.37, according to Reuters.
Adnoc raised $2.5 billion from the listing of its gas business, recording the largest ever listing on the Abu Dhabi Securities Exchange.
The listing valued Adnoc Gas in the region of $50 billion.
Orders worth $124 billion were submitted by investors with the IPO oversubscribed by more than 50 times, making it the highest total demand for an IPO in the Middle East and Africa, according to the statement from Adnoc last week.
“Additionally, with geopolitical tensions lingering in the background, and China’s reopening leading to an upswing in natural gas demand this year, Adnoc Gas shares could enjoy strong demand.”
Adnoc will continue to own a majority 90 percent stake in the company.
Abu Dhabi Pension Fund, Alpha Wave Ventures II, LP, IHC Capital Holding LLC, OneIM Fund I LP, and entities ultimately controlled by ADQ and the Emirates Investment Authority are the cornerstone investors.
The company announced in November it was combining its gas processing arm and its liquefied natural gas subsidiary into a single listed entity.
Over the past two years Adnoc has listed petrochemicals company Borouge – which previously held the record listing on ADX after raising $2 billion in 2022 – fertilisers and clean ammonia products maker Fertiglobe, and Adnoc Drilling. It also plans to float its logistics and services unit.
Companies from the Middle East raised some $21.9 billion through IPOs in 2022, according to Dealogic data. This is more than half the total for the wider Emea region, which also includes Europe and Africa.Source:
Arabian Gulf Business Insight