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24-05-23

ADNOC Expands Stake Offering in IPO of Logistics, Services Unit

(MENAFN) Abu Dhabi National Oil Co. (ADNOC) has announced an increase in the stake offered for its marine and logistics unit in its upcoming initial public offering (IPO), following substantial investor demand. In a statement released on Monday, ADNOC stated that it will now offer 19 percent of ADNOC Logistics and Services in the IPO, up from the initial plan of 15 percent. This adjustment could potentially raise USD769 million based on calculations by Reuters.

The decision to increase the stake offering comes as ADNOC received strong demand across all tranches, indicating a high level of investor interest. Moreover, the move aligns with ADNOC's commitment to ensuring a supportive trading environment for the company's stock following its listing. The increased stake offering reflects the positive market reception and confidence in the growth potential of ADNOC Logistics and Services.

The pricing range for the unit has been set at 1.99 dirhams (USD0.5420) to 2.01 dirhams per share since May 16. The final offer price is expected to be announced on May 25, providing investors with clarity on the valuation and investment opportunity. ADNOC's decision to expand the stake offering in the IPO indicates its eagerness to capitalize on the favorable market conditions and investor appetite.

Earlier reports in March revealed ADNOC's preparations to list ADNOC Logistics and Services in June, marking the oil giant's second IPO this year. ADNOC had previously raised USD2.5 billion through the IPO of its gas business. The decision to further unlock the value of its assets through IPOs demonstrates ADNOC's strategic approach to diversifying its shareholder base, unlocking capital, and driving growth opportunities.

ADNOC's expansion of the stake offering in the IPO of ADNOC Logistics and Services reflects its confidence in the unit's potential and its commitment to maximizing value for its stakeholders. By broadening investor participation, ADNOC aims to leverage the expertise and capital infusion necessary to further enhance the unit's operations, expand its footprint, and strengthen its position in the marine and logistics sector. The increased stake offering presents an attractive investment opportunity and reinforces ADNOC's position as a key player in the energy industry.
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