2023-05-16 09:24:18
Abu Dhabi market
The deal will be the second largest IPO in the Middle East this year
The initial public offering of ADNOC Logistics and Services was covered within minutes of opening, following the Abu Dhabi National Oil Company (ADNOC) said on Tuesday that it had set a price range for an initial public offering (IPO) for its marine logistics unit, which might raise up to $607. Millions of dollars and sets the value of ADNOC Logistics and Services at $4.05 billion.
The company said in a statement that it set the unit price range between 1.99 dirhams ($0.5420) and 2.01 dirhams per share. Applications for an initial public offering, which might raise as much as $607 million, have been covered at the upper end of the offering price, according to a letter to investors seen by Bloomberg.
The principal investors, Al Seer Marine Equipment and Supplies Company, National Marine Dredging Company, Alpha Oryx Limited and Abu Dhabi Pension Fund, made a joint commitment of regarding $180 million.
The deal is the second listing of a unit by Abu Dhabi National Oil Company – ADNOC, this year following it raised $2.5 billion in an initial public offering of its gas business in March. It is also set to be the second largest IPO in the Middle East this year so far.
ADNOC will offer regarding 1.1 billion shares in the marine logistics services unit, equivalent to 15%, of the company’s issued capital. The subscription period for the offering of shares extends from May 16 to May 24.
The listing comes as proceeds from initial public offerings in the Middle East fell 69% compared to the same period last year and amounted to $3.5 billion, according to data compiled by Bloomberg and seen by Al Arabiya.net.
However, the Middle East is doing much better than other regions such as Europe, where IPOs are still struggling to get off the ground.
ADNOC has appointed Citigroup, First Abu Dhabi Bank, HSBC Bank Middle East and JP Morgan as joint lead managers and joint bookrunners for the offering, while it works. Mollis & Co. is an independent financial advisor to the offering.
The Supply and Services unit delivers crude oil, refined products, dry bulk and LNG from Abu Dhabi to its international customers. The unit was established in 2016 following the merger of the Abu Dhabi National Tanker Company, the Petroleum Services Company and the Abu Dhabi Petroleum Ports Management Company.
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