UAE’s ADNOC to sell 15% stake in logistics unit IPO

UAE’s ADNOC to sell 15% stake in logistics unit IPO
Oil giant ADNOC intends to offer 15% of its shares in unit ADNOC L&S in an IPO.

Abu Dhabi oil giant ADNOC intends to offer 15 per cent of its shares in unit ADNOC Logistics & Services (ADNOC L&S) through an initial public offering (IPO) on the Abu Dhabi stock exchange, news agencies reported.

ADNOC L&S delivers crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi to its international customers. 

It was created in 2016 following a merger between Abu Dhabi National Tanker Co, Petroleum Services Co and Abu Dhabi Petroleum Ports Operating Co.

“As the sixth company ADNOC is bringing to market, ADNOC L&S is ideally placed to drive performance, deliver value, and capitalize on both ADNOC’s ambitious growth roadmap and the growing global demand for lower-carbon, reliable energy supplies,” Khaled Al Zaabi, group chief financial officer at ADNOC said in the statement.

The oil giant will offer about 1.1 million shares in its maritime logistics services unit, which is expected to list on June 1, subject to market conditions, Reuters said. 

The subscription period for the share offering is to due from May 16 until May 24.

This will be the Abu Dhabi oil giant’s second intial public offering this year after it raised $2.5 billion from its gas business in March.

Citigroup Global Markets Limited, First Abu Dhabi Bank, HSBC Bank Middle East and J.P. Morgan have been appointed as joint global coordinators and joint bookrunners, and Moelis & Co is acting as independent financial adviser on the IPO.

The company has made use from natural gas prices hike last year as Russia’s invasion of Ukraine changed energy markets. It made record updated underlying revenues of $8.7 billion in the 12 months through October.

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