Adnoc Logistics & Services IPO order book hits $125bn

WAM

The order book for the initial public offering (IPO) of Adnoc Logistics & Services (Adnoc L&S) reached over $125 billion, hitting an oversubscription level of 163 times.

This is the highest-ever oversubscription of a UAE bookbuild IPO, Abu Dhabi National Oil Company (Adnoc) said in a statement.

The IPO was priced at the top of the range at AED2.01 per share, valuing the company at $4.05 billion. The price range was set between AED1.99 and AED2.01 per share on May 16.  

The expected listing date on the Abu Dhabi Securities Exchange is June 1, Adnoc said in a statement published by the state-run Wam news agency.

The state-owned oil giant will continue to own a majority 81 percent stake in Adnoc L&S.

Earlier this week, Adnoc raised the IPO stake in its marine and logistics unit to 19 percent from 15 percent after strong demand. This is Adnoc’s second IPO in 2023 after raising $2.5 billion from its gas business. 

Adnoc L&S revenue and adjusted EBITDA for 2022 stood at $2.3 billion and $599.3 million, respectively, with revenue surging at a compound annual growth rate of more than 20 percent from 2017 to 2022.

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

The company 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.

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.