Abu Dhabi, UAE —Abu Dhabi National Oil Company (ADNOC) Monday said it has increased by the number of shares offered in the initial public offering (IPO) of ADNOC Logistics and Services by 4 percent on high investor demand across all tranches.
ADNOC will now offer 1.40 billion ordinary shares, equivalent to 19 percent of the Company’s total issued share capital. Previously, the company announced that it would offer 1.10 billion shares, representing 15 percent of its total issued share capital.
The offering size will be $762-769 million subject to the sale of all the shares in the IPO. The final offer price is expected to be announced on 25 May 2023.
ADNOC also decided to increase the size of the first tranche of the offering from 9 percent to 12 percent, representing 168 million ordinary shares.
The third tranche (reserved for employees of ADNOC group companies residing in the UAE and UAE national retirees of ADNOC group companies residing in the UAE) represents 3 percent of the offering, or more than 42 million ordinary shares.
The remaining 85 percent of the offering, or 1.19 shares are reserved for investors in the Professional Investor Offering.
Khaled Al Zaabi, Group CFO of ADNOC, said, “We are delighted to announce that we will be increasing the offer size for the ADNOC Logistics & Services IPO, which is set to be the second-largest market debut so far this year in the Middle East region. The ADNOC L&S IPO will be the next landmark listing in Abu Dhabi, cementing ADNOC as the key catalyst to attract a broader and deeper pool of global capital, further bolstering the local financial equity market.
The subscription period for the offering is unchanged and will continue until 24 May 2023. The final offer price per share will be determined through a book building process and is expected to be announced on 25 May.
ADNOC L&S is a logistics services provider to ADNOC Group, offering highly-specialized services across the energy value chain. The company has one of the largest and most diverse shipping fleets in the region and is among the largest operator and owner of self-propelled Jack-up barges. It also operates one of the largest integrated energy supply bases in the UAE, and provides shipping, end-to-end logistics and marine services to its customers.