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UAE's ADNOC to offer 15% stake in logistics unit IPO

Published 11/05/2023, 06:22 pm
Updated 11/05/2023, 06:37 pm
© Reuters. FILE PHOTO: A general view of ADNOC headquarters in Abu Dhabi, United Arab Emirates May 29, 2019. REUTERS/Christopher Pike/File Photo

DUBAI (Reuters) - Abu Dhabi oil giant ADNOC intends to offer 15% of its shares in unit ADNOC Logistics & Services (ADNOC L&S) through an initial public offering (IPO) on the Abu Dhabi stock exchange, the company said on Wednesday.

ADNOC will offer about 1.1 billion shares in its maritime logistics services unit, which is expected to list on June 1, subject to market conditions, the statement said. The subscription period for the share offering is to run from May 16 until May 24.

Reuters had reported in March that ADNOC was gearing up to list ADNOC L&S in June. 

"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.

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

Citigroup (NYSE:C) 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.

© Reuters. FILE PHOTO: A general view of ADNOC headquarters in Abu Dhabi, United Arab Emirates May 29, 2019. REUTERS/Christopher Pike/File Photo

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.

(This May 10 story has been corrected to say 1.1 billion, not million, in paragraph 2)

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