ADNOC Logistics & Services to offer over a billion shares in IPO

Plans $195 mn cash dividend
ADNOC to sell 15% stake in logistics unit 

In its second business listing this year, Abu Dhabi National Oil Co. (ADNOC) has decided to sell a 15% stake in its logistics and shipping unit through an initial public offering (IPO). According to a statement released on Wednesday, ADNOC Logistics & Services (ADNOC L&S) will offer approximately 1.11 billion shares. The company will declare the price range and begin taking investor orders on May 16, with final pricing scheduled for May 25.

Read more: ADNOC Gas, TotalEnergies, prioritize sustainability in $1 bn LNG deal

According to Bloomberg, ADNOC L&S‘ shares are anticipated to commence trading on June 1.

The share sale follows ADNOC’s listing of its gas business a few months ago, which raised $2.5 billion and is currently the second-biggest IPO worldwide this year.

ADNOC L&S plans to distribute a fixed cash dividend of $195 million for the second quarter and second half of 2023.

The joint lead managers for the IPO are First Abu Dhabi Bank PJSC, Abu Dhabi Commercial Bank PJSC, EFG Hermes UAE LLC, and HSBC Bank Middle East Ltd.

The Gulf IPO market has been relatively active despite a global slump. The Middle East has raised around $3.5 billion through listings in 2023, with Abu Dhabi accounting for the majority.

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