Abu Dhabi National Oil Company (ADNOC) is exploring the possibility of listing its international investment arm, XRG, on a global exchange outside the United Arab Emirates, according to three sources familiar with the matter. The move could create one of the largest listed energy companies worldwide. Discussions are in the early stages, with Bank of America advising on strategy, including potential venues such as London or New York. A minority stake in XRG could be floated in approximately five years, one source added.
Before pursuing an initial public offering (IPO), ADNOC would need to appoint a CEO for XRG and transfer assets into the company, two sources noted. The eventual listing aligns with ADNOC’s broader strategy to expand its global footprint in chemicals, natural gas, and renewables, reducing its reliance on oil export revenues. XRG, established in late 2023, currently holds $80 billion in assets and is tasked with pursuing international deals in these sectors.
London and New York are among the leading options for the listing. While London’s history as a hub for global energy giants like Shell and BP makes it an attractive choice, a U.S. listing could offer a higher valuation, one source said. Even a small percentage of XRG’s shares could result in the largest energy IPO ever in either market, rivaling the $29.4 billion raised by Saudi Aramco’s 2019 domestic listing.
ADNOC acquired German chemicals maker Covestro for €14.7 billion ($15.31 billion) and invested in U.S.-based LNG and hydrogen projects.
XRG’s board features prominent figures such as former BP CEO Bernard Looney, Blackstone President Jon Gray, and Egyptian billionaire Nassef Sawiris. ADNOC has also been active in listing its subsidiaries, including fuel retail, drilling, and logistics units, raising significant capital over the years. These efforts have collectively generated more funds than Saudi Aramco’s landmark 2019 IPO, according to Reuters calculations.