Latest news with #Dhs2.37
Gulf Today
21-02-2025
- Business
- Gulf Today
Adnoc completes $2.84 billion marketed offering of Adnoc Gas shares
Abu Dhabi National Oil Company (ADNOC) announced today the final offer price and successful completion of the marketed offering to institutional investors of 3.1 billion ordinary shares in ADNOC Gas plc. This represents 4 percent of the issued and outstanding share capital of ADNOC Gas and will increase the company's free float by 80 percent (to headline 9 percent). The offering saw exceptional demand from institutional investors in the GCC and internationally, with a total oversubscription of 4.4x and was priced at Dhs3.40 per share, approximately 43 percent above the Initial Public Offering (IPO) price of Dhs2.37 per share, and represents a competitive 5 percent discount to the company's closing share price of Dhs3.58 on 20th February 2025, being the last trading day ahead of the offering. The offering raised gross proceeds of approximately $2.84 billion (equivalent to approximately Dhs10.4 billion). Settlement of the offering is expected to occur on or around 26th February 2025. ADNOC Gas has continued to deliver consistent growth and profitability as evidenced by the company's full year 2024 financial results, generating an adjusted net income of $5 billion (the highest since its IPO), with a net income of $1.38 billion in the fourth quarter of 2024, in each case significantly ahead of the applicable Bloomberg consensus. This strong performance is in line with the company's most recent strategy update (announced in November 2024), outlining ADNOC Gas' refreshed growth pipeline, including the planned future acquisition of Ruwais LNG and its progress in achieving its target of over 40 percent adjusted EBITDA growth by 2029. ADNOC Group will continue to retain a majority 86 percent shareholding in the company and has also agreed to a restriction from selling further shares for a period of six months from the closing of the offering, subject to certain exceptions and unless waived by the Joint Global Coordinators. A higher free float is also expected to provide a pathway towards inclusion in the Morgan Stanley Capital International (MSCI) Emerging Market Index and the Financial Times Stock Exchange (FTSE) Emerging Market Index, which may take place at the next quarterly review, subject to ADNOC Gas meeting all the relevant inclusion criteria. Index inclusion of ADNOC Gas would contribute to the diversification of the company's investor base and significantly broaden awareness of its value proposition. BofA Securities, Citi, EFG-Hermes, First Abu Dhabi Bank, HSBC and International Securities acted as Joint Global Coordinators and Joint Bookrunners for the offering.
Gulf Business
21-02-2025
- Business
- Gulf Business
ADNOC Gas boosts liquidity with $2.84bn offering on ADX
IMage: Christopher Pike/Bloomberg via Getty Images The Abu Dhabi National Oil Company (ADNOC) has completed the marketed offering of 3.1 billion ordinary shares in ADNOC Gas, raising approximately $2.84bn (equivalent to Dhs10.4bn). This offering, which represents 4 per cent of ADNOC Gas' total share capital, saw exceptional demand from institutional investors in the GCC and internationally, with a total oversubscription of 4.4x. The shares were priced at Dhs3.40 each, representing a 43 per cent premium over the initial public offering (IPO) price of Dhs2.37 per share. The price is also a 5 per cent discount to ADNOC Gas' closing share price of Dhs3.58 on February 20, the last trading day ahead of the offering. ADNOC Gas offering is the largest placement on ADX so far The offering marks the largest placement on the Abu Dhabi Securities Exchange (ADX) to date and increases ADNOC Gas' free float by 80 per cent, bringing its free float to 9 per cent. Khaled Al Zaabi, group CFO at ADNOC, said: 'ADNOC is proud to have completed the first-ever marketed offering in the UAE and the largest placement on the ADX to date. The exceptional demand and competitive discount provided by the international and domestic investor community reflect the strong confidence in Strong financial performance The offering attracted significant investor interest, reflecting confidence in the company's growth trajectory and its strong financial performance. For the full year 2024, ADNOC Gas' strong performance is aligned with the company's refreshed growth pipeline, which was outlined in November 2024. This includes the planned acquisition of Ruwais LNG and a target of over 40 per cent adjusted EBITDA growth by 2029. ADNOC Group will retain an 86 per cent majority shareholding in the company and has agreed to a six-month lock-up period, preventing the sale of further shares, subject to certain exceptions. The offering's success is expected to increase the company's liquidity and potentially provide a pathway for its inclusion in the MSCI Emerging Market Index and FTSE Emerging Market Index at the next quarterly review, subject to meeting the inclusion criteria. This inclusion could further diversify the company's investor base and raise its profile globally. BofA Securities, Citi, EFG-Hermes, First Abu Dhabi Bank, HSBC, and International Securities acted as joint Global coordinators and joint bookrunners for the offering.
