UPDATE 1-Abu Dhabi's ADNOC to float 4% of gas business - sources

Kitco Media
By Reuters
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Reuters
(Adds context) By Hadeel Al Sayegh DUBAI, Feb 16 (Reuters) - Abu Dhabi National Oil Company (ADNOC) plans to float 4% of its gas business in an initial public offering, two sources told Reuters on Thursday. The state oil giant made the decision on ADNOC Gas ahead of the official announcement of the IPO expected on Friday, said the sources, declining to be named as the matter is not public. ADNOC declined to comment. Sources told Reuters last month that ADNOC was eyeing a valuation of at least $50 billion for its gas business, which would translate to proceeds from the IPO of roughly $2 billion, according to Reuters calculations. ADNOC is keen on launching the deal ahead of a slowdown in market activity during the Muslim fasting month of Ramadan which begins in late March, the sources said at the time.


The company announced in November it was combining its gas processing arm and its liquefied natural gas (LNG) subsidiary into a single listed entity. ADNOC is sharpening its focus on the gas market as Europe seeks to replace all Russian energy imports as early as mid-2024 after gradual supply cuts since Western sanctions were imposed on the country over its invasion of Ukraine. Companies from the Middle East have raised some $21.9 billion through IPOs in 2022, more than half the total for the wider EMEA region, which also includes Europe and Africa, according to Dealogic data. Over the past two years, ADNOC has listed petrochemicals company Borouge , fertilisers and clean ammonia products maker Fertiglobe , and ADNOC Drilling . It also plans to float its logistics and services unit. (Reporting by Hadeel Al Sayegh; Editing by Susan Fenton and Jan Harvey)

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