The share placement was initiated yesterday, representing 4% of ADNOC Gas' total capital. Two years prior, ADNOC garnered $2.5 billion from the initial public offering (IPO) of its gas business unit, which was one of the most significant IPOs in the region for 2023, attracting orders that were 50 times oversubscribed, totaling $124 billion.
Khaled Al Zaabi, Group Chief Financial Officer at ADNOC, commented on the additional 4% sale, stating, “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, while providing a pathway to a more diversified shareholder base and indexation through this secondary placement.”
In conjunction with the ADNOC Gas listing, the UAE's largest oil producer has also established a new investment company focused on low-carbon initiatives, chemicals, and natural gas. Named XRG, this company was founded late last year with an enterprise value of approximately $80 billion. It is set to officially begin operations in the first quarter of 2025, targeting transformative global investments that generate value in natural gas, chemicals, and lower-carbon energy solutions, as stated by the parent company.
Following the establishment of XRG, ADNOC has also divested some of its natural gas assets in the United States, along with its alternative energy operations there.
The Emirati firm is collaborating with Exxon to develop what is expected to be the world's largest ammonia and hydrogen production hub in Texas, and it holds an 11.7% stake in NextDecade’s Rio Grande LNG project, which includes a 20-year agreement for the supply of 1.9 million tons of liquefied gas annually.