(Bloomberg) -- The United Arab Emirates’ state energy company is weighing plans to sell a further stake in its gas business, according to people familiar with the matter.
Abu Dhabi National Oil Co. is considering selling 3% to 5% of Adnoc Gas, one of the people said, declining to be named because the information is not public. Based on Adnoc Gas’ Friday close, a 5% stake would be valued at just over $3.5 billion.
The deal could be announced in the coming days, the people said. No final decisions have been made on the size or timing and the company could decide against an offer if market conditions are not favorable, according to the people.
Representatives for Adnoc declined to comment, while a spokesperson for Adnoc Gas referred questions to Adnoc.
Adnoc Gas went public in 2023 and its shares have since risen about 50%. Adnoc owns a 95% stake and a selldown would help increase the unit’s free float, potentially boosting its chances of inclusion in broader market indexes.
Earlier this year, Adnoc sold down a stake in its drilling unit in a move analysts said could trigger significant inflows from passive investors.
The deal would come at a busy period for shares sales in the UAE. Hypermarket chain Lulu Retail raised $1.7 billion in an Abu Dhabi offering last month and Delivery Hero SE’s Middle East unit, Talabat, is working on a $1.5 billion Dubai initial public offering.
Alongside that rush of IPOs, secondary share sales are also picking up in the Middle East. Such selldowns involving Saudi Aramco, Adnoc Drilling and Saudi Telecom Co. have raised more than $14 billion this year.
--With assistance from Anthony Di Paola.
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