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$1.6 billion gas firm created

A new regional gas company, capitalised at around US $1.6 billion, is to launch from Sharjah.

A new regional gas company, capitalised at around US $1.6 billion, is to launch from Sharjah. As Oil&Gas Middle East went to press, Crescent Petroleum, Sajaa Gas and United Gas Transmissions Co. announced that they would be major shareholders in the firm, which will be called Dana Gas.

35% of the company’s shares will be offered to private investors through an initial public offering planned for September. The company will be listed on the Abu Dhabi Stock Market (ADSM), making it amongst the first oil & gas firms in the regions with a public listing. HSBC Middle East has been retained as financial advisor and lead manager for the offering.

49% of the company’s shares will be made available to non-GCC investors. The remaining 51% will be available only to GCC citizens. A company statement says that Dana Gas will focus on the natural gas business ‘in the Gulf and beyond.’ The company expects to be profitable in its first year of operation.

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