Dubai once again sets a superlative as a milestone. With the current IPO of ADNOC Gas, the superlatives within the IPO-market were blown up.
The press release explains: “ADNOC Gas on Monday listed and commenced the trading of its shares on the Abu Dhabi Securities Exchange (ADX) following the successful completion of the largest-ever initial public offering (IPO) on the ADX and the largest IPO globally to date this year.
The IPO, which raised gross proceeds of approximately $2.5 billion (equivalent to approximately AED9.1 billion) through the offering by Abu Dhabi National Oil Company (ADNOC) of approximately 5% of the Company’s total issued share capital (Offering), commanded strongest-ever demand for an IPO in the UAE, with total gross demand across all tranches of the Offering amounting to over $124 billion (equivalent to over AED450 billion), implying an oversubscription level in excess of 50 times in aggregate.
The Offering also attracted unprecedented demand from international institutional investors (excluding the UAE), who generated approximately $25 billion (equivalent to approximately AED92 billion) in orders for the IPO – approximately 10 times the total Offering size.
Through the landmark IPO of ADNOC Gas, local and international investors have been provided with the opportunity to own shares in a world-class, large-scale integrated gas processing company operating across the gas value chain.
ADNOC Gas has access to 95% of the UAE’s natural gas reserves, which are estimated to be the 7th largest natural gas reserves globally, and it supplies over 60% of the UAE’s sales gas needs as well as possessing a diverse customer base in over 20 countries.
ADNOC Gas’ highly successful IPO is not only a testament to the company’s strong growth and value proposition, but also speaks to the strong confidence in the Emirate’s robust market fundamentals and status as a premier investment destination.