ADNOC, the state-owned The Abu Dhabi National Oil Company, on Thursday announced the commencement of trading of ADNOC Logistics and Services (ADNOC L&S) shares, a mission-critical global energy maritime and logistics leader, on the Abu Dhabi Securities Exchange (ADX), following the completion of its landmark Initial Public Offering (IPO).
The ADNOC L&S IPO drew the highest demand globally for any IPO so far in 2023, is the second-largest listing in the Middle East and North Africa (MENA) region this year, following the IPO of ADNOC Gas in March, and generated record total orders of over $125 billion, according to Emirates News Agency (WAM).
With aggregate oversubscription more than 163 times, the landmark Offering attracted the highest-ever oversubscription level for a UAE bookbuild IPO.
ADNOC L&S IPO raised gross proceeds of $769 million through the Offering of 19% of the company’s total issued share capital, which was increased from 15% to meet overwhelming investor demand. The order book was covered throughout the range within minutes of opening.
Khaled Al Zaabi, Group Chief Financial Officer of ADNOC, said that this was a truly historic moment for ADNOC, Abu Dhabi, and the UAE, and one in which we can all take immense pride. ADNOC’s six IPOs to date have drawn over $385 billion of total demand, further cementing Abu Dhabi’s standing as a go-to destination for global capital.
The record-setting market debut of ADNOC L&S marks the next extraordinary achievement in our ongoing value creation journey, and we welcome our new investors to partake in our continued growth journey, Al Zaabi added.
Captain Abdulkareem Al Masabi, Chief Executive Officer of ADNOC L&S, said that this landmark IPO has been made possible by the company’s talented, skilled, and highly dedicated workforce. As a key enabler of global energy commodities, ADNOC L&S provides critical and highly specialised services across ADNOC’s entire value chain.
“The company is ideally positioned to continue to deliver secure and lower-carbon-intensity energy to the world. In pursuing our major strategic expansion drive, underpinned by up to $5 billion in medium-term capital expenditure, ADNOC L&S will provide investors with exciting growth opportunities, as we decarbonize our operations and deliver on our ambitious roadmap for the future,” Al Masabi said.
ADNOC L&S is the sixth company of Group that ADNOC has brought to market since 2017, having been preceded by ADNOC Distribution, ADNOC Drilling, Fertiglobe, Borouge, and ADNOC Gas. On a combined basis, ADNOC IPOs have generated total demand of more than $385 billion and raised gross proceeds of over $8 billion, demonstrating the vital role that ADNOC is playing in broadening and deepening the UAE’s increasingly vibrant and attractive equity capital markets.
The attractiveness of both ADNOC assets and Abu Dhabi as an investment destination of choice for global investors is further reinforced by exceptionally strong international demand for the ADNOC L&S IPO.
In addition to a strong track record for growth and a clearly defined strategy for future expansion, ADNOC L&S offers investors an attractive and progressive dividend pay-out. The company intends to pay a fixed dividend amount of $195 million for the second quarter and the second half of 2023 (equivalent to annualised dividends of $260 million). Thereafter, the Company expects to increase the annual dividend per share by at least 5% per annum, WAM added.