DUBAI: The UAE's ADNOC Gas raised the number of shares in its initial public offering by 25 percent on Monday as it seeks to raise $2.5 billion in what is expected to be the biggest flotation so far this year.
ADNOC Gas, an offshoot of the United Arab Emirates' Abu Dhabi National Oil Company (ADNOC), a major crude producer, expanded the offering from 4.0 to 5.0 percent or 3.84 billion shares.
A price range of 2.25-2.43 dirhams ($0.61-0.66) was announced last week, valuing the newly formed company at $47-50.8 billion.
The final offer price is due to be announced on Friday, before the shares launch on the Abu Dhabi stock exchange on March 13.
The offering was increased "based on significant investor demand across all tranches", said a statement carried by the official WAM News Agency.
The initial three billion shares were sold within an hour when they were made available last Thursday, a source close to the company told AFP.
ADNOC Gas, formed from ADNOC's former gas processing, LNG and industrial gas units, only became operational on January 1.
Its rapid flotation follows increased activity in the gas market following Russia's invasion of Ukraine, which sent European countries scrambling to find alternative suppliers.
ADNOC Gas's parent company, ADNOC, is one of the world's biggest producers of crude and the UAE's key revenue-earner.
According to Bloomberg, only $1.67 billion has been raised in IPOs in Europe, the Middle East and Africa so far this year.
