ADNOC eyes valuation of at least $50 bln for its gas business – sources

DUBAI (Reuters) – Abu Dhabi National Oil Company (ADNOC) is targeting a valuation of at least $50 billion for its gas business, which is due to go public this quarter, two sources familiar with the matter said. and prepared one of them. This year’s most anticipated stock market listing.

The state oil giant announced in November that it would combine its gas processing division and liquefied natural gas (LNG) subsidiary into a single publicly traded company.

ADNOC is targeting a valuation of at least $50 billion for ADNOC Gas, but discussions on the valuation have not been completed and the company has yet to determine the size of the offering, sources close to the matter said. rice field. private.

They said ADNOC Gas’ initial public offering could start as early as February before market activity slows during the Muslim fasting month of Ramadan, which begins at the end of March.

ADNOC declined to comment when contacted by Reuters.

The company said the gas market is on track to replace all Russian energy imports as early as mid-2024 after gradual supply cuts since Western sanctions were imposed on the country over its invasion of Ukraine. Sharpen your focus on

ADNOC Gas’ valuation of more than $50 billion is nearly tied to Italian energy group Eni (ENI.MI), US refiner Valero Energy (VLO.N) and US oil producer Occidental Petroleum (OXY.N). Comparable.

Goldman Sachs (GS.N) and Bank of America (BAC.N) have abandoned their roles as lead underwriters for the offering as the timeframe has moved forward, two other sources said. . HSBC (HSBA.L) has been appointed to work with First Abu Dhabi Bank (FAB.AD) on the deal, they said.

Middle Eastern companies raised around $21.9 billion through IPOs in the region in 2022, according to data from Dealogic. This is more than half of the total for the wider EMEA region, which includes Europe and Africa.

ADNOC’s Chief Executive Officer, Sultan Al-Jaber, is leading the incorporation of new energies, low-carbon fuels such as ammonia and hydrogen, LNG and chemicals into new business sectors alongside upstream and downstream businesses.

More than four years ago, the company launched a transformation strategy that included monetization of assets as part of Abu Dhabi’s plan to diversify its economy and attract foreign investment.

Over the past two years, ADNOC has listed petrochemical company Borouge (BOROUGE.AD), fertilizer and clean ammonia product maker Fertiglobe (FERTIGLOBE.AD) and ADNOC Drilling (ADNOCDRILL.AD). Preparing the IPO of the logistics and services sector.

Reported by Hadeel Al Sayegh. Edited by Ghaida Ghantous and Jacqueline Wong

Our standards: Thomson Reuters Trust Principles.

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