The Abu Dhabi National Oil Company (ADNOC) has received orders for more than $125 billion in the initial public offering of a stake in ADNOC Logistics and Services.
Today, Thursday, May 25 (2023), ADNOC announced the completion of the price construction process and the initial public offering of the “Supply and Services” unit, the leading global shipping and maritime logistics company for the energy sector that plays a pivotal role in enabling the UAE and Abu Dhabi to provide supplies Reliable energy for the world.
The offering of a minority stake representing 19% of the shares of ADNOC Logistics and Services Company, after increasing it from 15% to meet the large demand from investors, at a final price of 2.01 dirhams per ordinary share, achieved total revenues upon settlement estimated at 2.83 billion dirhams ($ 769 million) for ADNOC.
The largest demand for an IPO
The launch of ADNOC Logistics and Services was in exceptional demand. This makes it the highest request for an IPO in the world this year, according to data seen by the specialized energy platform.
The IPO saw overwhelming demand from individuals and professional investors in the UAE, totaling over AED 460 billion ($125 billion), exceeding the overall target value by 163 times and achieving the highest level of exceeding the target ever for a price building for an IPO in the UAE.
Khaled Al Zaabi, Chief Financial Officer of ADNOC Group, said: “We are pleased with the unique demand witnessed by ADNOC Logistics and Services from the retail investor segment in the UAE, as well as from local and international investment institutions.”
The IPO saw the highest bid for an IPO globally so far this year and achieved the highest ever value-exceeding target for an IPO price build-up in the UAE.
ADNOC theses
This is the sixth historic initial public offering (IPO) that ADNOC has carried out with a minority stake in one of its subsidiaries in 5 years, according to the Emirates News Agency, WAM.
The offering represents a new achievement in the Abu Dhabi National Oil Company’s ongoing program to create and enhance value. It confirms the role of ADNOC Logistics and Services in providing rewarding investment opportunities supported by prospects for strong and long-term growth and gradual dividend distributions.
Al Zaabi added: “While it continues its pivotal role in attracting global capital, ADNOC welcomes the base of new investors and looks forward to their participation in the company’s growth and development process, while continuing its efforts to achieve sustainable growth for the UAE, Abu Dhabi and its shareholders.”
ADNOC Logistics and Services is the sixth company in which ADNOC has offered a minority stake in the Abu Dhabi Stock Exchange over the past five years.
This comes after the successful IPOs for ADNOC Distribution, ADNOC Drilling, Fertiglobe, Borouge and ADNOC Gas; This reinforces ADNOC’s pivotal role as a major catalyst for the diversification and growth of financial markets in the UAE and Abu Dhabi, and consolidates the country’s position as a preferred destination for global capital.
The initial public offerings that ADNOC has carried out collectively so far have raised 29.38 billion dirhams ($8 billion), achieving a total demand of more than 1.41 trillion dirhams ($385 billion); This supports ADNOC’s ambitious growth strategy and consolidates the UAE’s position as a preferred destination for global investments.
ADNOC Supplies and Services business results
According to the unaudited financial results, which reflect the acquisition of “Zakher Marine International” in 2022, the company’s revenues amounted to 8.4 billion dirhams ($ 2.3 billion).
ADNOC Logistics and Services has a proven track record of achieving local and international growth, operational excellence and effective cost control. This enabled it to achieve large profits and strong financial results.
Adjusted earnings before interest, taxes, depreciation and amortization amounted to 2.2 billion dirhams ($ 599.3 million) for the year ending December 31, 2022, and the company’s revenue increased at a compound annual growth rate of more than 20% during the years 2017-2022.
ADNOC Logistics and Services is implementing a strategy aimed at expanding its business scope based on a medium-term program to increase capital expenditures amounting to 18.36 billion dirhams ($5 billion), which provides investors with attractive and important growth opportunities.
The logistics and services company aims to pay an attractive dividend of 716 million dirhams ($195 million) for the second quarter and second half of 2023 (equivalent to an annual dividend of $260 million), and expects to increase the dividend by 5% annually over the long term. average.
ADNOC Logistics & Services shares are expected to be listed on the Abu Dhabi Stock Exchange on June 1, 2023.
Upon listing, ADNOC will continue to own a majority stake in ADNOC Logistics and Services, amounting to 81% in the company, according to data seen by the specialized energy platform.
related topics..
Also read..
Leave a Reply