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The UAE's state oil giant ADNOC said it will raise about $2.5 billion in a flotation of its gas business - the world's biggest IPO this year - as it announced final pricing on Friday.

The ADNOC Gas offering was set at 2.37 dirhams ($0.65) per share, towards the top of its range, implying a market capitalisation of about $50 billion, the company said in a statement.

Total demand topped $124 billion, making it more than 50 times oversubscribed, ADNOC added, calling it the biggest demand yet seen for an initial public offering in the Middle East and North Africa.

The offer was expanded from 4.0 percent to 5.0 percent this week in reaction to demand.

ADNOC Gas, hived off from the Abu Dhabi National Oil Company (ADNOC) at the start of this year, is expected to start trading on the UAE capital's stock exchange on March 13.

"ADNOC is delighted with the unprecedented demand for ADNOC Gas shares from UAE retail investors as well as the local and global institutional investor community," ADNOC Group CEO Khaled al-Zaabi said in the statement.

ADNOC, one of the world's largest oil producers and the Gulf monarchy's key revenue-earner, will retain a 90 percent stake in the subsidiary formed from its former gas processing, LNG and industrial gas units.

The rapid turnaround of the ADNOC Gas IPO follows increased activity in the market following Russia's invasion of Ukraine, which sent European countries scrambling to find alternative suppliers.

Gas is also being touted as a cleaner fuel as countries around the world strive to reduce their emissions in an attempt to contain global warming.

"The strong demand for the IPO reflects a number of factors, including the important role that gas will play globally as a cleaner transition fuel and the strong demand outlook from Europe," Monica Malik, chief economist at UAE bank ADCB, told AFP.