Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Abu Dhabi National Oil Company (ADNOC) on Monday stated that no decision has been taken regarding an additional share sale in ADNOC Gas, a listed company on the Abu Dhabi Securities Exchange (ADX).
The statement follows a Bloomberg News report last week suggesting that ADNOC is considering selling an additional 3% to 5% stake in ADNOC Gas.
ADNOC clarified that no decision has been made about the share offering, including the timing and size of the proposed sale. However, the statement does not rule out the possibility of a share sale in the near future. “ADNOC sees significant value creation potential in ADNOC Gas, which could be further enhanced by broader indexation, driving liquidity and shareholder base diversification. This would require a higher free float at current market capitalisation levels,” the statement noted.
ADNOC reiterated its commitment to generating sustainable returns for investors across its listed portfolio. “ADNOC continuously explores strategic opportunities to drive further growth, prioritise shareholder value, including in ADNOC Gas, and reiterates its commitment to enhance the Abu Dhabi equity capital market.”
In 2023, ADNOC raised over Dh9.1 billion by selling 5% of ADNOC Gas shares in an Initial Public Offering (IPO). The share price, which started trading at Dh2.37 on the first day of listing, is now at Dh3.40—a nearly 50% gain in less than two years. Now, if ADNOC Gas were to sell another 5% stake, it would raise around Dh13 billion at today’s share price.
On Monday, ADNOC Gas shares ended 1.15% lower than the last closing price, following ADNOC's statement ruling out an immediate additional stake sale.
Experts say a higher float helps the company become part of wider market indexes. Echoing this view, Samer Mardini, Chief Investment Officer at Yorklyn Asset Management, said,“I believe ADNOC should consider floating a higher percentage of ADNOC Gas shares to enhance market liquidity and attract a more diversified investor base.”
Noting the strong performance of the company since the IPO, Mardini said that the move could unlock further value and align with the goal of strengthening the Abu Dhabi equity market.
“However, timing is crucial to ensure maximum benefit for shareholders and market confidence,” he added.
