Abu Dhabi's state-owned Adnoc now plans to float 5pc of its gas business in a highly-anticipated initial public offering (IPO) next month.
The firm had originally intended to offer 4pc of Adnoc Gas in the IPO but it said it has decided to increase the stake "based on significant investor demand across all tranches". The decision aims "to reflect Adnoc's commitment to a supportive trading environment for [Adnoc Gas'] stock post-admission", it said.
Some 12pc of the shares on offer will be available to retail investors, up from an initial 10pc. A further 4pc will be available to employees and retired UAE nationals who used to work for Adnoc and who reside in the country, up from 2pc. This leaves 84pc reserved for institutional investors.
Adnoc has kept the indicative price range at 2.25-2.43 dirhams per share (61-66¢/share) but it is now planning to sell up to 3.84bn shares, compared with around 3bn previously. The listing, the UAE's first IPO for 2023, will be on the Abu Dhabi Securities Exchange. Adnoc could raise as much as $2.54bn at the top end of the price range. The final offer price is expected to be announced on 3 March, while listing and trading are expected to commence on 13 March.
Adnoc hopes Adnoc Gas will increase its share of the European gas market as the continent looks for alternatives to Russian imports. Adnoc formed Adnoc Gas through a merger of its gas processing and LNG subsidiaries this year.

