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Adnoc Logistics & Services shares surge on debut

Adnoc L&S logistics fleet Adnoc
The transaction involved the sale of one million barrels of crude oil through the newly implemented local currency settlement system
  • Abu Dhabi oil company has brought six of its divisions to market
  • Logistics & Services IPO raised $769m
  • Firm exports Adnoc products and services 100 other customers

Shares in Adnoc Logistics & Services rose 44.8 percent above their listing price on Thursday as the company made its debut on the Abu Dhabi Securities Exchange (ADX).

The initial public offering (IPO) for 19 percent of the business drew the highest demand globally for any listing so far in 2023, raising $769 million.

Shares traded at AED2.91 as the Abu Dhabi market opened against an IPO price set at the top of the indicative range at AED2.01 per share.

The offering was oversubscribed by 163 times, making it the highest-ever oversubscription level for a UAE bookbuild IPO.

State-owned oil company Adnoc will continue to own a majority 81 percent stake in the maritime logistics provider.

Adnoc L&S, which exports crude oil, refined products, dry bulk and liquefied natural gas from the UAE capital, has one of the region’s largest and most diverse shipping fleets and is among the largest operators and owners of self-propelled jack-up barges.

In addition to its anchor customer, Adnoc, the company services more than 100 global customers.

It ships to more than 50 countries through a fleet in excess of 500 vessels, including 245 owned vessels.

The company has earmarked up to $5 billion under its medium-term capital expenditure programme.

Adnoc L&S plans to pay dividends of $260 million for 2023, of which $65 million will likely be paid in October. Another $130 million will be disbursed in April 2024.

Adnoc has brought six companies to market since 2017 including Adnoc Distribution, Adnoc Drilling, Fertiglobe, Borouge, Adnoc Gas and Adnoc L&S.

The IPOs have generated total demand of more than $385 billion and raised gross proceeds in excess of $8 billion.