Adnoc lines up another unit for Abu Dhabi listing

Reuters/Adnan Abidi

• Adnoc said to be floating its marine and logistics subsidiary in June
• Raised $2.5bn from listing its gas business in March

Abu Dhabi National Oil Co (Adnoc) plans to launch an initial public offering of its maritime and logistics unit in June, Reuters reported, in what will be the government-owned conglomerate’s latest flotation of an ancillary business. 

Adnoc’s part-privatisation drive began in 2017. It has sold minor stakes in subsidiaries Adnoc Drilling, Adnoc Gas, Adnoc Distribution, petrochemicals producer Borouge and fertiliser maker Fertiglobe, raising around $7.2 billion combined from IPO subscribers. 

These companies all then joined Abu Dhabi’s bourse, boosting its market capitalisation and diversifying its listings. 

• Abu Dhabi’s Adnoc Gas shares up 18% on debut
• Adnoc Gas completes record-breaking $2.5bn ADX IPO
• Regional IPOs, the ‘cannibal’ factor and irrational exuberance

Next up will be Adnoc Logistics & Services (Adnoc L&S), sources told Reuters. Adnoc has not commented on the report. First Abu Dhabi Bank, HSBC, Citigroup and JPMorgan are working on the flotation, Reuters reported. 

Adnoc L&S claims to be the region’s “largest fully integrated shipping and logistics company”, according to its website, serving parent firm Adnoc and more than 100 other customers in 50 countries. 

The subsidiary’s shipping fleet of around 55 vessels transports liquefied natural gas, liquified petroleum gas, crude, refined products, dry bulk and containerised cargo.

In 2022, the Middle East’s 71 IPOs had a combined transaction value of $25.37 billion, according to S&P Global Market Intelligence data.