Home » ADNOC Gas announces final offer price, record demand for IPO upon conclusion of bookbuilding

ADNOC Gas announces final offer price, record demand for IPO upon conclusion of bookbuilding

by Dubaiforum

ABU DHABI, 3rd March, 2023 (WAM) — ADNOC Gas today announced the final offer price for the shares offered by Abu Dhabi National Oil Company (ADNOC or the Selling Shareholder) in connection with ADNOC Gas’s initial public offering (IPO or Offering) and listing on the ADX, following the successful conclusion of the bookbuild and public subscription process.

The final offer price for the shares in ADNOC Gas offered by ADNOC via the Offering has been set at AED2.37 per share, implying a market capitalisation (at the time of Admission) of ADNOC Gas of approximately $50 billion (equivalent to approximately AED182 billion).

The price range for the IPO was previously set between AED2.25 to AED2.43 per share, meaning that the Offering was priced towards the top end of the previously announced price range of the Offering, following significant demand from both local and international investors.

Based on the final offer price, the total offering size is approximately $2.5 billion (equivalent to approximately AED9.1 billion). This confirms that post-Admission, the IPO will be the largest-ever listing on the ADX, surpassing that of another ADNOC group company, Borouge plc, which successfully listed on the ADX on 3rd June, 2022.

The bookbuilding process generated orders of over $124 billion (equivalent to over AED450 billion) in aggregate from (i) qualified institutional investors in a number of countries, including the UAE (the Qualified Investor Offering); and (ii) UAE retail investors, including employees of ADNOC group companies residing in the UAE and UAE national retirees of ADNOC group companies residing in the UAE (together, the “UAE Retail Offering”), implying an over-subscription level above 50 times in aggregate.

Commenting on the historic bookbuild for a MENA IPO, Khaled Al Zaabi, Group CFO of ADNOC, commented, “ADNOC is delighted with the unprecedented demand for ADNOC Gas shares from the UAE retail investors as well as the local and global institutional investor community – and we are extremely proud that this IPO witnessed record demand for a UAE and MENA region IPO, with ADNOC Gas being the largest-ever market debut in Abu Dhabi and the largest IPO globally to date this year.

“This truly historic listing is the fifth company ADNOC has successfully brought to market in as many years, with the unparalleled level of investor interest reinforcing both the attractiveness of ADNOC’s world-class and low-carbon intensity energy asset base, and cementing Abu Dhabi’s leading position as a go-to destination of global capital.

“As the next landmark milestone in our ongoing value creation program, ADNOC Gas is a highly attractive value proposition, and underpins ADNOC’s key role as a catalyst and critical enabler of domestic economic growth and the diversification of the UAE financial marketplace. We welcome our broadest investor base yet to join ADNOC as we continue to deliver sustainable growth for Abu Dhabi, the UAE, and our shareholders.”

The Company confirms that the previously announced increased Offering size of 3,837,571,100 ordinary shares, equivalent to approximately 5% of the Company’s total issued share capital, has been fully allocated, resulting in gross proceeds of approximately $2.5 billion, the net proceeds of which will be received by ADNOC, upon settlement.

Admission is expected to take place at 10:00 am (Gulf Standard Time) on 13th March 2023, subject to customary closing conditions, under the ticker symbol “ADNOCGAS” and ISIN “AEE01195A234”.

Upon Admission, ADNOC will continue to own a majority 90% 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 (together, the “Cornerstone Investors”) will, in each case, directly or indirectly, subscribe for 34% of the Offering (via the Qualified Investor Offering) through their IPO cornerstone investment agreements (together, the “Cornerstone Investment Agreements”) announced on 23rd February 2023.

The Cornerstone Investors, subject to certain conditions, will not offer, sell or announce an offer of any shares they have acquired under the Cornerstone Investment Agreements for a period of twelve-months following Admission.

Following the completion of the subscription period of the Offering, the size of the First Tranche (as defined in the UAE Prospectus) of the Offering (reserved for First Tranche Subscribers (as defined in the UAE Prospectus)) was set at 12%; the size of the Second Tranche (as defined in the UAE Prospectus) (reserved for investors in the Qualified Investor Offering) was set at 84%.

The size of the Third Tranche (as defined in the UAE Prospectus) of the Offering (reserved for employees of ADNOC group companies residing in the UAE and UAE national retirees of ADNOC group companies residing in the UAE) was set at 4%. Investors participating in the UAE Retail Offering will receive an SMS confirmation of their respective allocation on 8th March 2023.

Total demand across the tranches in the UAE Retail Offering amounted to more than $23 billion (in excess of 58 times oversubscribed), the largest-ever demand for retail tranches in a MENA IPO to date.

Moelis & Company UK LLP DIFC Branch acted as the Independent Financial Advisor to the Company.

First Abu Dhabi Bank PJSC and HSBC Bank Middle East Limited acted as Joint Global Coordinators. Abu Dhabi Commercial Bank PJSC, Arqaam Capital Limited, BNP PARIBAS, Deutsche Bank AG, London Branch, EFG-Hermes UAE Limited (acting in conjunction with EFG Hermes UAE LLC) and International Securities L.L.C. acted as Joint Bookrunners.

First Abu Dhabi Bank PJSC acted as the Lead Receiving Bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC and Al Maryah Community Bank acted as the Receiving Banks.

The Shariah Supervision Committee of First Abu Dhabi Bank PJSC has issued a pronouncement confirming that, in its view, the Offering is compliant with Shariah principles.

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