ADNOC Sets Price Range for IPO of Marine, Logistics Unit, Aiming to Raise up to USD607m

Abu Dhabi National Oil Co. (ADNOC) announced on Tuesday that it has established a price range for the initial public offering (IPO) of its marine and logistics unit, ADNOC Logistics & Services. The IPO has the potential to generate proceeds of up to USD607 million, valuing the unit at approximately USD4.05 billion in terms of equity valuation.

According to the company's statement, the price range for the unit has been set at 1.99 dirhams (USD0.5420) to 2.01 dirhams per share. As part of the IPO, cornerstone investors including Al Seer Marine Supplies & Equipment, National Marine Dredging Co., Alpha Oryx Limited, and the Abu Dhabi Pension Fund have committed a total of approximately USD180 million.

ADNOC is expected to raise between USD601 million and USD607 million through the sale of approximately 1.1 billion shares, representing 15 percent of the issued share capital of its maritime logistics services unit. The subscription period for the share offering is scheduled to run from May 16 to May 24.

In March, Reuters reported that ADNOC was preparing to list ADNOC Logistics & Services in June, marking the second IPO of the year for the Abu Dhabi oil giant. Earlier in March, ADNOC raised USD2.5 billion through an IPO of its gas business.

Citigroup Global Markets Limited, First Abu Dhabi Bank, HSBC Bank Middle East, and J.P. Morgan have been appointed as joint global coordinators and joint bookrunners for the IPO, while Moelis & Co. will act as the independent financial adviser.

ADNOC Logistics & Services was established in 2016 following the merger of Abu Dhabi National Tanker Co., Petroleum Services Co., and Abu Dhabi Petroleum Ports Operating Co. The unit is responsible for transporting crude oil, refined products, dry bulk, and liquefied natural gas from Abu Dhabi to its international customers.


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