Latest news with #Dh3.58
Zawya
24-02-2025
- Business
- Zawya
GCC sees biggest ever ABB with ADNOC Gas sale: IFR
Adnoc Gas should see a major boost to liquidity following a Dh10.4bn (US$2.83bn) accelerated offer from parent Adnoc; the largest UAE ECM deal since Adnoc Gas's IPO of Dh9.1bn in 2023 and the largest ever GCC ABB. Plans had been long in the making with banks mandated last year. An attempt was going to be made in November however the company decided not to proceed, issuing a statement that it was continuing to explore options in response to media speculation. Shares have continued to rise since with annual results published earlier this month showing record net income of US$5bn helping shares rise nearly 7% in February. A two-day wall-crossing began on Tuesday for an offer of 3.07bn shares, representing 4% of the company, and was left multiple times covered on indications. Formal coverage came within 30 minutes of launch on Thursday with guidance of Dh3.35–Dh3.40 for a 5%–6.9% discount to close of Dh3.58, with later guidance to Dh3.40 where shares priced. Demand left the offer 4.4 times subscribed with a book in excess of 200 lines. More than half the demand came from international accounts with 75% of the book allocated to non-GCC accounts, in line with management aims to diversify the register. 'A big complaint in the region on IPOs is international allocations,' said a banker involved. 'The objective was to give these accounts an opportunity to get what they'd wanted [in the IPO].' The banker noted some orders had come in smaller than expected due to investors buying actively in the market since the IPO. The top 10 took 50% and the top 20 took around two-thirds. The higher free-float of 9% is hoped to provide a pathway to inclusion in the MSCI and FTSE emerging market indices. Bank of America, EFG Hermes, First Abu Dhabi Bank, HSBC and International Securities ran the sale in Adnoc Gas. Bank of America's inclusion is significant as the bank walked away from Adnoc Gas's IPO over its lack of Big Four auditor (with Goldman Sachs doing the same). The company is now audited by Deloitte. Encouraging signs While accelerated offers are relatively novel in the region, Adnoc had previously provided a good test case with a Dh3.4bn selldown for 5.5% of Adnoc Drilling in May. This was followed by a smaller 1% sale by US-based Helmerich & Payne, later in October. 'This is notable on the back of Aramco,' said a second banker on Adnoc Gas, referencing the Saudi oil company's US$12.35bn follow-on last year. 'This is a format where more can get done on an accelerated basis, which is a positive.' Following the sale Adnoc's stake falls from 90% to 86%. Despite the size of the liquidity event, shares closed up 0.8% on Friday at Dh3.61. 'Adnoc is a name with a huge amount of credibility and this proves what can be done,' said the first banker. 'A lot doubted it could be done at this discount.' The first banker noted the positive execution of the deal could give the state confidence in launching its next planned IPO Etihad Airways. The deal is ready to launch and just awaiting approvals, though it will need to launch within the next two weeks in order to avoid being in the market too far into Ramadan, which begins on February 28.
The National
20-02-2025
- Business
- The National
Adnoc plans to sell 4% stake in Adnoc Gas to raise capital
Business Energy At Adnoc Gas's last closing price of Dh3.58, the offering is valued at $3.02 billion Adnoc, the top shareholder in Adnoc Gas, has said it plans to sell part of its stake in the subsidiary to institutional investors as it looks to improve liquidity and raise capital. The Abu Dhabi-based energy company will offer about 3.1 billion ordinary shares, representing about 4 per cent of Adnoc Gas's issued and outstanding shares, Adnoc said on Thursday. At Adnoc Gas's last closing price of Dh3.58, the offering is valued at Dh11.1 billion ($3.02 billion), making it potentially the largest share sale in the Mena region since Saudi Aramco's $12.3 billion offering in June last year. The offering, which will commence immediately and is expected to close on Friday, will be open to qualified institutional and other investors in a number of countries, Adnoc said. The company, which owns a 90 per cent stake in Adnoc Gas, said it could decide to close the offering at any time before the stated deadline. 'Since its initial public offering in March 2023, Adnoc Gas has consistently delivered strong growth, robust financial performance and superior shareholder returns,' said Khaled Al Zaabi, group chief financial officer at Adnoc. 'As a committed, long-term majority shareholder, this offering aligns with Adnoc's strategic objectives to enhance the liquidity and free float of Adnoc Gas." The final number of shares to be placed and the offering price will be determined at the close of the book-building process and the proceeds will go to Adnoc. The share offering aims to boost trading and liquidity, diversify shareholders and increase free float. A higher free float is also expected to "provide a pathway" for Adnoc Gas's inclusion in the Morgan Stanley Capital International (MSCI) and Financial Times Stock Exchange (FTSE) emerging market indexes, which could occur at the next quarterly review, subject to Adnoc Gas meeting all relevant inclusion criteria, Adnoc said. Adnoc Gas, which has access to 95 per cent of the UAE's natural gas reserves, is looking to boost exports of products such as liquefied natural gas, liquefied petroleum gas and naphtha. In the Emirates, Adnoc Gas supplies to customers, mostly utilities and industrial companies, through an extensive network of pipelines. The company is set to acquire Adnoc's majority stake in the Ruwais LNG project, which will have a total capacity of 9.6 million tonnes per annum. It is scheduled to start in the second half of 2028. In 2023, Adnoc raised about Dh9.1 billion from the sale of a 5 per cent stake in Adnoc Gas, which was the UAE's biggest IPO that year. The company sold more than 3.8 billion shares, with the IPO drawing strong demand from institutional and retail investors, and generating more than $124 billion in orders. It was about 50 times oversubscribed. Last year, Adnoc raised $935 million by selling 880 million additional shares in its drilling unit – Adnoc Drilling – to institutional investors after recording strong demand for the offering.
