UAE’s ADNOC prices gas business IPO near top of range

ADNOC Gas’ share price was set at 2.37 dirhams per share (Shutterstock)
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Updated 03 March 2023
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UAE’s ADNOC prices gas business IPO near top of range

ABU DHABI: State oil giant Abu Dhabi National Oil Co. on Friday set the final price for its initial public offering, valuing the company at about $50 billion after drawing record demand, according to Reuters.

It will become Abu Dhabi’s largest listed company.

ADNOC Gas’ share price was set at 2.37 dirhams ($0.65) per share, near the top end of the price range that was set at 2.25 to 2.43 dirhams a share, ADNOC said in a statement.

Proceeds from the IPO came to roughly $2.5 billion out of an order book that topped $124 billion, ADNOC said. That exceeded demand for Saudi oil giant Aramco’s 2019 IPO, which raised $25.6 billion and remains the world’s largest.

The Middle East bucked global trends last year to raise some $21.9 billion through IPOs, according to Dealogic. That was more than half the total for the wider Europe, Middle East and Africa region.

ADNOC last week said it would increase the stake offered to investors to 5 percent from 4 percent due to strong demand for the deal, Abu Dhabi’s largest IPO.

ADNOC Gas is expected to begin trading on March 13.

ADNOC Group Acting Chief Financial Officer Khaled Al Zaabi said the strong interest in the IPO highlighted the “attractiveness of ADNOC’s world-class and low-carbon intensity energy asset base” and Abu Dhabi as a destination for global capital.

The group has raised billions of dollars from listing businesses like ADNOC Drilling and Fertiglobe, as well as from selling stakes in its network of gas and oil pipelines. It also plans to float its logistics and services unit.


New SPARK launch ushers Eastern Province from black gold to EV charging and AI mobility

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New SPARK launch ushers Eastern Province from black gold to EV charging and AI mobility

DAMMAM: The lavender carpet was rolled out and the symbolic shovels were placed in decorative sandboxes as Smart Mobility broke ground, bringing Saudi-made EV charging to life at its first manufacturing facility at King Salman Energy Park in Dammam.

As part of the ceremony, Smart Mobility inaugurated SPARK’s first electric vehicle charging station.

The project brought together Foxconn Interconnect Technology, a unit of Taiwan’s Foxconn that makes components used for connectivity, and Saudi’s Saleh Suleiman Alrajhi & Sons. 

It also represented a significant milestone in supporting foreign investment in the Kingdom and a major step toward localizing advanced manufacturing capabilities in order to support the rapidly-growing EV market.

“As we gather today to celebrate a groundbreaking of an important edition in this ecosystem …we’re creating a community— with all that comes with a community,” SPARK President and CEO Mishal Al-Zughaibi said.

He highlighted the park’s proximity to the Kingdom’s core energy infrastructure.

It will be headquartered in the Eastern Province, notably near to where Aramco’s Well No. 7, later named “Prosperity Well,” struck black gold in 1938, six years after the country unified as a Kingdom. That discovery changed the country — and the world. 

In recent years, there has been a tremendous effort to diversify beyond oil and, once again, the Eastern Province is at the forefront, but this time, it is using innovation and AI to catapult the Kingdom into that new realm. 

The location was also ideal, it was noted, on several levels, including how it would allow for ample access to ports, and the planned integration with the future GCC Railway network would additionally create a unified regional manufacturing and export corridor. 

According to Smart Mobility, SPARK facility was created with the aim to produce Saudi-made EV charging solutions, including the Charging Point Management System. Three products are already certified by the Saudi Standards, Metrology and Quality Organization. 

Launching in 2026, the project aims to align with Vision 2030 and to support local content goals, which will be overseen by the Local Content and Government Procurement Authority.

Smart Mobility CEO, Prince Fahad Nawaf Al Saud, who was on hand, said the decision to build at SPARK was strategic.

“SPARK is the Kingdom’s primary hub for energy, logistics and industrial innovation. For EV infrastructure to scale reliably, it must be integrated with the country’s most critical energy assets,” he said.

Prince Fahad also addressed the evolving and morphing nature of the industry, saying: “Mobility is being reshaped by artificial intelligence. Vehicles are becoming intelligent systems that think, react and connect. Level-4 autonomous capability is accelerating globally and these systems depend on electric platforms.”

He added that if the Kingdom aims to lead in AI, automation and smart city technologies, it must develop EV infrastructure as a foundational national pillar.

“EVs are not simply a fuel alternative — they are the operating system of the AI era,” he said.

Prince Fahad stated: “This groundbreaking ceremony is not only a milestone for Smart Mobility, it is a milestone for the Kingdom.”

He added: “Guided by his Royal Highness Crown Prince Mohammed bin Salman, we built this with the support from the Ministry of Energy, Ministry of Industry, and Ministry of Investment and many government entities that continue to empower our national ambitions to localization and advanced manufacturing.” 

Continuing to address the crowd, Prince Fahad said: “Some people in Saudi love petrol cars, fuel is cheap — why would anyone shift it to electric? And they are right (to question that). Traditional vehicles are still deeply loved, but we must also recognize the truth.” 

The truth, to him, is that AI is “no longer science fiction,” it is reality now. “We are entering an age where we must respond quickly to global changes … we have much work ahead to test, to certify, to scale and to deliver on the promise,” he said.

“The world is entering a new chapter defined not by horsepower but by computing powe r— and Saudi Arabia must lead, not follow in this transition,” Prince Fahad added.. 

FIT Chairman and CEO Sidney Lu noted that next year the Chinese calendar will welcome the Year of the Horse, an apt metaphorical transition as it signals powerfully moving forward from old to now.

He was excited to be on the ground on his first visit to the Eastern Province. 

“FIT brings decades of experience in precision manufacturing, high-reliability electronics, and large-scale global production,” Lu said, adding: “Our shared objective is clear: bring world-class technologies into Saudi Arabia, embed them locally and position Saudi-made solutions for future export.”

While Lu headed back to his home in Taiwan following the meeting “to recharge,” he said the joint venture will be showcasing FIT’s global manufacturing expertise with Saudi Arabia’s industrial ambitions — and that gives him much energy. 

 “I love this place. Every time I come over here, I get inspired; inspired by the spirits, by the energy, by the youth. And I really get inspired with how people are willing to move forward,” Lu told Arab News.