Abu Dhabi National Oil Company (ADNOC) is reportedly considering the sale of an additional 3% to 5% stake in its gas subsidiary, ADNOC Gas. This move, aimed at enhancing liquidity and broadening investor access, could raise as much as $3.5 billion, based on ADNOC Gas’s current valuation on the Abu Dhabi Securities Exchange (ADX). The exact details of the sale, including its size and timing, remain under discussion.
The ADNOC Gas unit has been a focal point of ADNOC’s strategic realignment in recent years, reflecting a broader commitment to diversifying revenue streams while strengthening the UAE’s equity capital markets. This approach has already seen ADNOC Gas raise $2.5 billion in an initial public offering (IPO) earlier, marking ADX’s largest-ever listing. The company sold 5% of its shares in that offering, priced at AED 2.37 per share.
The potential stake sale is part of ADNOC’s ongoing efforts to attract significant institutional and retail investments, particularly as global energy markets continue to adapt to shifts in demand. This move aligns with ADNOC’s broader strategy to optimize its portfolio while enabling sustainable returns for stakeholders. ADNOC’s exploration of strategic opportunities highlights its goal to integrate its operations within global financial ecosystems, ensuring that its subsidiaries remain competitive and well-positioned for future growth.
ADNOC Gas also plays a pivotal role in ADNOC’s gas portfolio. Recently, it announced plans to acquire ADNOC’s majority stake in the Ruwais LNG plant, a landmark project set to significantly expand the UAE’s liquefied natural gas (LNG) capabilities. With two LNG trains and a combined production capacity of 9.6 million tonnes annually, the facility aims to utilize clean grid electricity, underscoring ADNOC’s commitment to energy sustainability and carbon reduction initiatives.
The listing of ADNOC Gas has already positioned it as a major player within the regional energy markets, attracting both domestic and international interest. Adding a larger free float of its shares could lead to the inclusion of ADNOC Gas in regional and global equity indices, amplifying its visibility among investors and driving substantial capital inflows. This potential has sparked speculation about its impact on the UAE’s broader capital market strategy.
Market analysts believe this move could encourage a wave of secondary offerings in the region, further enhancing the UAE’s position as a hub for energy-focused investments. ADNOC’s previous sale of additional shares in ADNOC Drilling earlier this year set a precedent, increasing that subsidiary’s free float to 16.5% and boosting trading volumes. The model underscores ADNOC’s ability to leverage its subsidiaries to strengthen ADX as a leading exchange.
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