Abu Dhabi National Oil Company (ADNOC) will raise its stake in its gas business to 5% from 4% in an initial public offering, the national oil major said on Monday.

ADNOC said it decided to increase its stake in ADNOC Gas “based on the huge demand from investors for all parts.”

It added that decisions had also been made to create a “supportive trading environment” for the company’s shares once they were listed.

As a result, the retail portion increases from 10% of issuance to 12%.

ADNOC will also increase the portion reserved for employees of ADNOC group companies and United Arab Emirates state retirees residing in the country from 2% to 4%.

The remaining 84% of issuance has been reserved for institutional investors.

ADNOC sold approximately 3.84 billion shares in its natural gas business, equivalent to about 5% of its issued share capital.

The price range for ADNOC Gas was set from AED2.25 to AED2.43 ($0.6126 to $0.6617) per share last week, valuing the company’s stake at $47 billion to $50.8 billion.

ADNOC will raise about $2.54 billion from the sale, according to Reuters calculations.

ADNOC Gas’s IPO was reported within hours of the company’s opening on Thursday, according to messages sent to investors and seen by Reuters, suggesting that demand for the Gulf listing remains healthy among equity investors.

The final sale price is expected to be announced on March 3 and will be listed for trading on March 13.

ADNOC is stepping up its focus on the gas market as Europe seeks to replace all Russian energy imports as early as mid-2024 after supplies dwindle following Western sanctions on Moscow over its invasion of Ukraine.

Middle Eastern companies raised about $21.9 billion in IPOs in 2022, accounting for more than half of the total in the broader EMEA region, which includes Europe and Africa, according to Dealogic data.