Latest IPO in UAE to raise up to $607 mln

ADNOC has set a price range for the proposed IPO of its marine and logistics unit with expected returns of up to USD 607 million, Reuters reported on Tuesday.

A total of 1.1 million shares ADNOC Logistics & Services are expected to be listed on June 1, 2023, representing 15% of the company’s stocks.

According to the company, unit shares will be sold at between USD 0.54 and USD 0.55.

A subscription period for the offerings will run from Tuesday to May 24, 2023, with a final offer price announced on May 25, 2023.

Al Seer Marine Supplies & Equipment, National Marine Dredging Company, Alpha Oryx and the Abu Dhabi Pension Fund have made a combined commitment of around USD 180 million for shares in the logistics giant.

The IPO is being overseen by Citigroup Global Market, First Abu Dhabi Bank, HSBC Bank Middle East and JPMorgan Chase & Co., with Moelis & Company acting as an independent financial adviser.

The move could see the company’s equity valuation rise to up to USD 4.05 billion.

Established in 2016 through a merger between Abu Dhabi National Tanker Company, Petroleum Services Company and Abu Dhabi Petroleum Ports Operating Company, ADNOC Logistics & Services transports oil, refined products, dry bulk and LNG from Abu Dhabi to international markets.

This is ADNOC’s second IPO in 2023 after it floated of ADNOC Gas in the first quarter.

Abu Dhabi accounted for 14% of all global IPOs and attracted capital of around USD 3 billion in Q1 2023, making it the third largest attractor of capital through privatisation in the quarter worldwide.