ADNOC Gas gains Dh33.8b on first day after IPO

In the first trading day, the stock saw active trades totalling 276.2 million shares worth AED781.9 million through 8,921 executed trades….reports Asian Lite News

ADNOC Gas stocks increased their gains and capital profits to more than AED33.8 billion on the first day of trading after the company’s initial public offering (IPO) at the Abu Dhabi Securities Exchange (ADX).

The company’s market capital rose from AED181.9 billion to AED215.6 billion by the end of today’s trading session, closing at AED2.81 per share, an increase of 18.6 percent compared to the final offering price.

In the first trading day, the stock saw active trades totalling 276.2 million shares worth AED781.9 million through 8,921 executed trades.

The listing and trading of ADNOC Gas shares began at ADX after the successful completion of the largest-ever IPO in the market and the largest in the world so far this year.

The IPO, which raised total proceeds of AED9.1 billion through the Abu Dhabi National Oil Company, ADNOC, gaining a minority stake representing some five percent of the company’s total issued capital, witnessed the strongest demand ever for an IPO in the UAE, with total demand across all segments being more than AED450 billion, exceeding the target value by around 50-fold.

ADNOC Gas is the fifth company that ADNOC has successfully brought to market and the Offering’s unprecedented success is the culmination of its ongoing value creation programme, which has seen ADNOC play a critical role in enabling the growth and expansion of the UAE economy and its capital markets.

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.

Recording an Adjusted Revenue (as defined in the International Offering Memorandum) of $21.1 billion and net income of $4.2 billion (each for the ten months ended 31 October 2022), the Company is well-positioned to capitalize on increasing global demand for natural gas to support its growth strategy and future dividend commitments.

The Company is targeting to pay dividends of $1.625 billion in the fourth quarter of 2023 in respect of the first half of the year ended 31st December 2023 and a further $1.625 billion in the second quarter of 2024 in respect of the second half of the year ended 31st December 2023. Thereafter, the Company expects to grow its annual target dividend amount from $3,250 million (which is equal to the annualised dividend for the year ended 31st December 2023) by a growth rate of 5% per annum on a dividend per share basis over the period 2024-2027.

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