Gulf sovereign wealth funds and financial institutions are likely to be the biggest investors in the upcoming follow-up public offer (FPO) of Adani Enterprises Limited, the flagship business of the Adani Group, the Indian business daily The Economic Times reported, citing informed sources.

UAE’s International Holding Company (IHC), Abu Dhabi Investment Authority, ADQ, Qatar Investment Authority and Mubadala have been tapped for the FPO, the report stated.

Abu Dhabi-listed IHC is planning to acquire close to 10 to 15% of the issue by investing between $250 and $300 million, making it the largest non-promoter foreign shareholder in Adani Enterprises, the newspaper said.

In November, Adani Enterprises announced the initiation of the FPO to raise as much as $2.5 billion from retail and institutional investors.

As of September 2022, the promoters own 72.63% of Adani Enterprise, while the remaining is with the public.

The report noted that the FPO will lead to a marginal 3.5% dilution for the promoters.

In May 2022, IHC invested $2 billion in three Adani portfolio companies – Adani Green Energy, Adani Transmission and Adani Enterprises, The Economic Times reported.

(Editing by Seban Scaria seban.scaria@lseg.com)