The Abu Dhabi National Oil Company (ADNOC) is exploring an international listing for its investment arm, XRG, in what could become one of the largest energy IPOs globally, according to sources familiar with the matter. The listing, expected within the next five years, would mark a significant milestone in ADNOC’s ambitious global expansion strategy.
Early Discussions and Strategic Planning
ADNOC has engaged Bank of America to advise on the potential listing of a minority stake in XRG, which was established in late 2023. Before proceeding with an IPO, the company must appoint a CEO and transfer key assets into XRG, sources indicate.
Potential Listing Venues: London or New York
Among the options being considered for the IPO are the London and New York stock exchanges. London, home to major energy companies like Shell and BP, presents an attractive option despite recent capital outflows. Meanwhile, a U.S. listing could secure a higher valuation, making it a competitive alternative.
XRG’s Expanding Global Portfolio
XRG, managing $80 billion in assets, has a mandate to pursue global investments in chemicals, natural gas, and renewables. Recent high-profile deals under XRG include:
- A merger between ADNOC’s Borouge and Austria’s Borealis, creating Borouge Group International with a $60 billion enterprise value.
- The €14.7 billion acquisition of German chemicals firm Covestro.
- A stake in NextDecade’s Rio Grande LNG export facility in Texas.
- Investment in ExxonMobil’s Texas hydrogen project.
- A 24% stake in Masdar, the UAE’s renewable energy powerhouse.
ADNOC’s Global Expansion and IPO Strategy
With backing from UAE President Sheikh Mohamed bin Zayed Al Nahyan, ADNOC has committed $150 billion between 2023-2027 for accelerated international growth. The oil giant has been actively listing subsidiaries, including fuel retail, drilling, fertilizers, and logistics, raising more funds than Saudi Aramco’s record 2019 IPO.
High-Profile Leadership and Board Members
XRG’s board includes notable figures such as former BP CEO Bernard Looney, Blackstone President Jon Gray, and Egyptian billionaire Nassef Sawiris, positioning the company for strategic global expansion.
Stay tuned for further updates on ADNOC’s plans for XRG’s IPO and its global energy ambitions.
