High demand pushes Adnoc Gas' IPO size up to about $2.5 billion

As part of its initial public offering, Abu Dhabi National Oil Co (ADNOC) will increase its stake in its gas business from 4% to 5%.

In a statement, ADNOC said the decision to increase stakes was based on "significant investor demand across all tranches."

The decision was also made to create a "supportive trading environment for the company’s stock post-admission," it added. As a result, the retail tranche has been increased from 10% to 12% of the offering.

The per share price range for ADNOC Gas was set last week at 2.25 dirhams to 2.43 dirham (($0.6126-$0.6617), giving the company an equity valuation of $47 billion to $50.8 billion.ADNOC is selling roughly 3.84 billion shares in its gas business, equivalent to about 5% of its issued share capital.

The final offer price is expected to be announced on March 3, while listing and trading is expected to commence on March 13.

ADNOC is sharpening its focus on the gas market as Europe seeks to replace all Russian energy imports as early as mid-2024 after gradual supply cuts since Western sanctions were imposed on Moscow over its invasion of Ukraine.

Companies from the Middle East raised some $21.9 billion through IPOs in 2022, accounting for more than half the total from the wider EMEA region including Europe and Africa, Dealogic data showed.