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Adnoc ups IPO of maritime logistics unit to 19%

Adnoc L&S plans to pay dividends of $260 million for 2023

Abu Dhabi National Oil Company (Adnoc) has increased the stake size in its maritime logistics subsidiary’s initial public offering (IPO) following high investor demand.

The oil company will now offer 19 percent of Adnoc Logistics & Services (Adnoc L&S) in the IPO, up from 15 percent, potentially raising $769 million based on the top end of the indicated price range.

Adnoc set the price range for the unit at AED1.99 ($0.5420) to AED2.01 per share on May 16. The final offer price is expected to be announced on May 25.

Khaled Al Zaabi, group CFO of Adnoc, said: “We have witnessed exceptional demand across all tranches, with significant interest across the local, regional and global investment community, reflecting Adnoc L&S’ strong growth prospects and a key catalyst to attract a deeper pool of global capital.”

Adnoc L&S 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 and ships to more than 50 countries through a fleet in excess of 500 vessels, including 245 owned vessels.

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.