(MENAFN- Khaleej Times) Abu Dhabi National Oil Company on Wednesday announced the final offer price for the initial public offering (IPO) Adnoc of Logistics & Services. of Dh2.01 per share, implying a market capitalisation (at the time of Admission) of Adnoc L&S of approximately $4.05 billion (equivalent to approximately Dh14.9 billion).
Total demand across the tranches in the UAE retail offering amounted to more than $31 billion (in excess of 269 times oversubscribed).
The price range for the IPO was previously set between Dh1.99 to Dh2.01 per share, meaning that the offering was priced at the top end of the previously announced price range of the offering, following significant demand from both local and international investors. Based on the final offer price, the total offering size is approximately $769 million (equivalent to approximately Dh2.83 billion).
The bookbuilding process generated orders of over $125 billion (equivalent to over Dh460 billion) in aggregate from: professional investors in a number of countries, including the UAE; and UAE retail investors, including employees of Adnoc group companies residing in the UAE and UAE national retirees of Adnoc group companies residing in the UAE, implying an oversubscription level of 163 times in aggregate, the highest-ever oversubscription level for a UAE bookbuild IPO.
Khaled Al Zaabi, Group CFO of Adnoc said:“We are delighted with the unparalleled demand for Adnoc L&S shares from UAE retail investors as well as the local, regional, and global investor community. This offering saw the largest demand globally for an IPO this year to date and achieved the highest-ever oversubscription for a UAE bookbuild IPO. This record-setting listing is the sixth company Adnoc has successfully brought to market within five years and marks the next remarkable achievement in our ongoing value creation program. Adnoc L&S is a highly attractive value proposition, underpinned by strong and long-term growth credentials and a progressive dividend pay-out. Cementing our role as a critical catalyst in attracting global capital, Adnoc welcomes its new investor base to partake in our continued growth story, as we continue to deliver sustainable growth for Abu Dhabi, the UAE, and our shareholders.”
Adnoc L&S confirmed that the previously announced increased offering size of 1,405,714,765 ordinary shares, equivalent to 19 per cent of the company's total issued share capital, has been fully allocated, resulting in gross proceeds of approximately $769 million, the net proceeds of which will be received by Adnoc, upon settlement. Admission is expected to take place at 10:00 AM UAE time on June 1, 2023, subject to customary closing conditions, under the ticker symbol“AdnocLS” and ISIN“AEE01268A239”.
Upon admission, Adnoc will continue to own a majority 81 per cent stake in the company. The cornerstone investors - Al Seer Marine Supplies & Equipment Co; National Marine Dredging Company; Alpha Oryx Limited (owned by Abu Dhabi Development Holding Company LLC), and Abu Dhabi Pension Fund - will, in each case, directly or indirectly, subscribe to 23.4 per cent of the offering (via the professional investor offering). The cornerstone investors, subject to certain conditions, will not offer, sell or announce an offer of any shares they have acquired for a period of 12 months following admission.
Following the completion of the subscription period of the offering, the size of the first tranche of the offering was set at 12 per cent; the second tranche (reserved for investors in the professional investor offering) at 85 per cent ; and the third tranche (reserved for employees of Adnoc group companies residing in the UAE and UAE national retirees of Adnoc group companies residing in the UAE) at 3 per cent . Investors participating in the UAE retail offering will receive an SMS confirmation of their respective allocation on May 30.
Moelis & Company UK LLP DIFC Branch acted as the independent financial advisor to the company.
Citigroup Global Markets Limited, First Abu Dhabi Bank PJSC, HSBC Bank Middle East Limited and J.P. Morgan Securities Plc acted as joint global coordinators and joint bookrunners. Abu Dhabi Commercial Bank PJSC, Arqaam Capital Limited, Crédit Agricole Corporate and Investment Bank, EFG-Hermes UAE Limited (acting in conjunction with EFG Hermes UAE LLC), International Securities LLC and Société Générale acted as joint bookrunners. First Abu Dhabi Bank PJSC acted as the lead receiving bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC and Al Maryah Community Bank acted as the receiving banks.
The Shariah supervision committeed of FAB and ADCB have issued a pronouncement confirming that, in their view, the offering is compliant with Shariah principles.