Abu Dhabi National Offshore Oil Co. (ADNOC) announced this week that it will sell a 4% stake in its gas division when it lists on the local stock exchange next month.

Subscriptions for the ADNOC Gas initial public offering (IPO) are set to open next week and the period will close on March 2 ahead of listing on the Abu Dhabi Securities Exchange (ADX) on March 13.

Having transferred 5% of the share capital in ADNOC Gas to Abu Dhabi National Energy Co. (TAQA), ADNOC holds 95% in the company and will hold 91% after listing 3.07bn shares in the IPO. Sources told Reuters last week that ADNOC is targeting a valuation of $50bn and potentially generating around $2bn from the sale.

Following the listing, ADNOC Gas intends to pay dividends of $1.625bn during Q4 for the first half of the year, and another $1.625bn during Q2 2024 for the second half of 2023.

ADNOC said it expects to “grow the annual target dividend amount from $3.25bn by a growth rate of 5% per annum on a dividend per share basis over the period 2024-2027.”

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