Dubai: UAE's first IPO of the year has been announced, with ADNOC Gas set to offer more than 3 billion of its shares and list Abu Dhabi Securities Exchange (“ADX”).

ADNOC intends to offer approximately 4 per cent of ADNOC Gas’ issued share capital in the offer as part of the UAE Retail Offering, to: (a) individuals and other investors in the UAE; (b) employees of ADNOC group companies residing in the UAE; and (c) UAE National retirees of ADNOC group companies residing in the UAE; and to qualified institutional and other investors.

ADNOC retains the right to amend the size of the offer.

ADNOC has multiple entities listed on ADX already, including ADNOC Distribution, ADNOC Drilling, and its JVs Borouge and Fertiglobe.

Khaled Al Zaabi, Acting Group CFO of ADNOC, said in statement: “We are very pleased to announce our intention to float a minority stake in ADNOC Gas, our world-class gas processing, operations and marketing company.

"Natural gas is central to the energy transition and as the UAE’s gas champion, ADNOC Gas is well-positioned to responsibly harness our significant natural gas resources, while driving efficiencies, delivering value, and reliably supplying this key fuel to meet the world’s growing energy needs.

“This is the fifth occasion where we are bringing an ADNOC company to the market in as many years, and we are delighted to once again offer international and local investors a highly compelling investment opportunity, allowing shareholders to partake in ADNOC and Abu Dhabi’s ongoing value creation journey.”

Dividend promise

ADNOC Gas targets dividends of $1.625 billion in the fourth quarter of 2023 as payout for the first-half of 2023. A further $1.625 billion will be paid in the second quarter of 2024 as second-half 2023 payment.

"Thereafter, ADNOC Gas expects to grow the annual target dividend amount from $3.25 billion by a growth rate of 5 per cent per annum on a dividend per share basis over the period 2024-27," the company said.

In a caveat, the entity said: "ADNOC Gas’ ability to pay dividends is dependent on a number of factors, among others, the availability of positive net income distributable reserves, capital expenditure plans and market conditions. There is no assurance that ADNOC Gas will pay dividends or, if a dividend is paid, what the amount of such dividend will be."

More to follow...

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