DUBAI, Feb 17 (Reuters) – Abu Dhabi National Oil Company (ADNOC) will sell 4% of its gas business in an initial public offering (IPO), according to a newspaper announcement and an emailed statement to on friday.
The ADNOC Gas offer will be open from February 23 to March 2 for institutional investors, while retail investors can subscribe until March 1, according to the National newspaper announcement and statement.
The shares are expected to start trading on March 13. No target price per unit has been set for the 3.07 billion shares that will make up the sale.
Reuters first reported the size of the IPO on Thursday, ahead of the announcement. Sources also told Reuters last month that ADNOC was looking at a valuation of at least $50 billion for its gas business, which would mean IPO proceeds of roughly $2 billion or more.
ADNOC owns a 95% stake in ADNOC Gas following the transfer of 5% of the share capital to Abu Dhabi National Energy Company ( TAQA.AD ). After the IPO, ADNOC will hold 91% of ADNOC Gas.
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If the deal goes through, ADNOC Gas expects to target dividend payments of $1.625 billion in the fourth quarter of this year for the first half of 2023, according to an ADNOC Gas document to be distributed by email on Friday.
ADNOC Gas plans to offer another $1.625 billion in the second quarter of 2024 for the second half of 2023.
The company said it expects to “increase its annual target dividend amount from $3.25 billion at a 5% annual growth rate on a dividend per share basis over the period 2024-2027.”
ADNOC is emphasizing its focus on gas as Europe seeks to replace all Russian energy imports by mid-2024 following gradual supply cuts following Western sanctions imposed over what Moscow calls its “special operation” in Ukraine .
Companies from the Middle East raised $21.9 billion through IPOs in 2022, more than half of the total for the wider EMEA region, which includes Europe and Africa, according to Dealogic.
Over the past two years, ADNOC has listed petrochemical company Borouge (BOROUGE.AD), fertilizer and ammonia producer Fertiglobe (FERTIGLOBE.AD) and ADNOC Drilling (ADNOCDRILL.AD).
It also plans to float its logistics and services unit.
Reporting by Hadeel Al Sayegh; Editing by Christian Schmollinger, Gerry Doyle and Tom Hogue
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