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Abu Dhabi’s national oil company ADNOC is considering an initial public offering of its newly-created energy investment firm XRG on a stock market outside the United Arab Emirates, in what could be one of the world’s biggest IPOs ever, Reuters reports, citing sources with knowledge of the plans.
ADNOC announced the creation of XRG at the end of last year and the company, an energy investment firm focused on low-carbon energy solutions and chemicals, begins operations this quarter.
Any potential listing of a minority share in the new firm would take place in around five years, according to Reuters’s sources.
London or New York have been floated as options for a potential international listing in a few years, the sources added.
ADNOC has already listed ADNOC Gas, raising $2.5 billion from the listing of its gas business unit in what was one of the biggest IPOs in the region in 2023.
ADNOC also listed ADNOC Drilling in 2021 in what was one of the largest share sales in the UAE at the time. ADNOC Drilling, the largest national drilling company in the Middle East by rig fleet size, is the primary provider of drilling rig hire services and certain associated rig-related services to the ADNOC Group on agreed contractual terms.
With the IPO in 2021, ADNOC Drilling attracted international investors and capital to expand in the regional market in the Middle East.
At the end of last year, ADNOC, the company pumping nearly all the oil of the UAE announced the launch of XRG, an international lower-carbon energy and chemicals investment company with an enterprise value of over $80 billion.
Initially, XRG will focus on transformational global investments that create value across natural gas, chemicals, and lower-carbon energy solutions.
More recently, ADNOC has moved some of its natural gas and green energy assets in the United States into XRG.
