Abu Dhabi National Oil Company going public
Dubai, United Arab Emirates –
Abu Dhabi’s national gas company is set to raise up to $2 billion by selling a 4% stake in an initial public offering, the company said Thursday.
The previously announced sale of more than 3 billion shares was priced at 2.25 to 2.34 Emirati dirhams and said the company could be valued at up to $50.8 billion. The subscription period will begin on Thursday and the final offer price will be announced on March 3rd.
Abu Dhabi National Oil Company has access to 95% of the UAE’s natural gas reserves, the seventh largest in the world. The company’s gas division, known as ADNOC Gas, supplies over 60% of the domestic market and exports to over 20 countries.
Gas utility net profits hit $4.2 billion in the first 10 months of 2022, up from $3.6 billion for the entirety of 2021.
In 2019, Saudi Arabia’s state-owned oil giant Aramco made a similar IPO, raising around $30 billion.
ADNOC CEO Sultan al-Jaber, who also oversees renewable energy projects in the United Arab Emirates, has angered climate change activists when he was elected chairman of this year’s COP28 UN climate conference.
Oil and gas are driving the UAE’s rapid transformation into a high-tech global business hub, home to the futuristic cities of Dubai and Abu Dhabi and the world’s busiest airport for international flights. Analysts believe Emirates is looking to maximize profits as the world increasingly turns to renewable energy.
Emirates says it has invested more than $50 billion in renewable energy projects in 70 countries and plans to invest another $50 billion over the next decade. It has also pledged to be carbon neutral by 2050, but it is unclear how it will reach that goal.