Abu Dhabi’s Adnoc Seeks $2.8 Billion in Gas Unit Stake Sale

(Bloomberg) -- Abu Dhabi’s state energy company is seeking to raise 10.4 billion dirhams ($2.84 billion) from a secondary offering in its gas business.

Abu Dhabi National Oil Co. is offering about 4%, or 3.1 billion shares, in Adnoc Gas to institutional investors, according to terms of the deal seen by Bloomberg News. 

The selldown is likely to be priced at 3.40 dirhams per share, the top of a marketed range, with investor demand exceeding the stock available by multiple times, according to messages from banks seen by Bloomberg News.

That would imply a 5% discount to Adnoc Gas’s Thursday closing price of 3.58 dirhams per share. The stock has gained over 14% in the last 12 months. 

Bank of America Corp., Citigroup Inc., EFG Hermes, First Abu Dhabi Bank PJSC, HSBC Holdings Plc and International Securities are arranging the transaction, according to the terms. 

Bloomberg News reported in November that Adnoc was mulling selling a stake in its gas arm to increase the unit’s free-float and boost its chances of joining broader market benchmarks.

Secondary share sales have been picking up in the Middle East. Last year, Adnoc sold down $935 million worth of shares in its drilling unit. In neighboring Saudi Arabia, selldowns involving Saudi Aramco and Saudi Telecom Co. raised more than $13 billion in 2024.

Adnoc Gas is the biggest supplier of liquefied natural gas in the United Arab Emirates. It distributes most of the gas in the UAE, runs an offshore export terminal and will more than double capacity for global sales of liquefied natural gas from a plant being built on the Persian Gulf coast. Adnoc took its gas subsidiary public in 2023, raising $2.5 billion. 

(Updates with price guidance in third paragraph)

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