The market value of ADNOC Gas increased by more than 20% in the first minutes of its first trading day on the Abu Dhabi Stock Exchange, after the strong demand for the company's shares during the IPO period.
The company's share reached the level of 2.9 dirhams, compared to the offering price, which was set at 2.37 dirhams, bringing the company's market value to 222.5 billion dirhams, according to Abu Dhabi market data.
ADNOC had offered 3.84 billion shares, representing 5% of the shares of ADNOC Gas, and raised about $2.5 billion from the offering.
The IPO of ADNOC Gas is the largest ever on the Abu Dhabi Stock Exchange, surpassing the IPO of Borouge, a subsidiary of ADNOC as well.
Abu Dhabi-based ADNOC established ADNOC Gas last year by merging the LNG and gas processing arms.
IPO activity in the region
Energy-rich Arab Gulf states are seeking to offer public assets to diversify their economies and open up stock markets more to foreign investors. Rising energy prices also helped the region, particularly the UAE and Saudi Arabia, outperform the decline in IPOs globally last year, and more companies are expected to be listed in the coming months.
ADNOC Gas is one of the largest gas processing entities in the world, with a capacity of 10 billion cubic feet per day across eight onshore and offshore sites and a pipeline network extending over 3,250 km (2019 miles).
This endeavor is expected to lead the UAE to increase the production and trade of liquefied natural gas, as the country is building a production facility in the coastal city of Fujairah to triple its capacity to about 15 million tons annually, which could make it one of the ten largest exporters of fuel in the world.