Adnoc L&S's $317M Share Placement Oversubscribed 7 Times Eyes MSCI Inclusion

(MENAFN- Khaleej Times)

Adnoc Logistics & Services (Adnoc L&S), the UAE's leading global energy maritime logistics company, has welcomed a fresh wave of institutional investors after successfully completing a $317 million share placement that was nearly seven times oversubscribed.

The strong response, one of the highest levels of demand for a secondary offering in the region, reflects robust market confidence in the company's growth trajectory, operational resilience, and long-term strategic direction.

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The placement involved approximately 222 million shares, equivalent to 3.0 per cent of Adnoc L&S's total capital. As a result, the company's free float has risen from 19 per cent to 22 per cent, enhancing liquidity and providing greater access for international investors.

Analysts say the broader shareholder base now positions the company for potential inclusion in the widely tracked MSCI Index during the next quarterly review, a milestone that would further elevate its global profile.

Adnoc will continue to retain a strategic 78 per cent ownership, underlining its long-term commitment to Adnoc L&S's success while giving new investors a larger stake in the company's growth story.

Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, hailed the deal as a turning point for the company's capital markets journey.“We are delighted to welcome our new shareholders and grateful for the trust placed in Adnoc L&S. This placement underscores the strength of our business, the resilience of our operating model, and the confidence the market has in our long-term strategy,” Al Masabi said.“As we celebrate 50 years of maritime excellence, we remain focused on executing our growth strategy, driving innovation, and creating sustainable shareholder value.”

Investor appetite for the offering reflects broader confidence in Abu Dhabi's dynamic equity markets, where Adnoc Group has spearheaded several successful listings and secondary transactions in recent years.

Adnoc L&S's appeal is underpinned by its strong financial performance and long-term revenue visibility. The company has secured more than $26 billion in forward-contracted revenues, supported by nearly a thousand years of combined secured contracts across its Integrated Logistics, Shipping, and Services segments. This backlog provides stable cash flows, supports disciplined capital allocation, and reassures investors of predictable returns.

The company has also demonstrated consistent growth momentum. In the second quarter of 2025, Adnoc L&S posted record results, with revenue surging 40 per cent year-on-year to $1.26 billion. Ebitda climbed 31 per cent to $400 million, while net profit rose 14 per cent to $236 million. The performance underscored its ability to capitalise on rising global demand for energy transport and logistics services while maintaining cost discipline.

As part of its growth strategy, Adnoc L&S is undertaking a major fleet expansion programme, including the addition of new liquefied natural gas (LNG) carriers and very large ethane carriers (VLECs). These investments align with the company's role in supporting Adnoc's global growth ambitions, particularly in supplying cleaner fuels and meeting energy transition targets.

With a footprint that spans 19 offices serving more than 100 customers in over 50 countries, the company has grown into one of the most diversified and reliable players in global energy maritime logistics. Its customer base stretches across energy majors, utilities, and industrial clients, underscoring its role as a trusted partner for critical energy transport needs.

Although Adnoc L&S was formally established only a few years ago through the consolidation of Adnoc's maritime and logistics assets, it builds on nearly five decades of operational expertise. The company's 50th anniversary this year highlights its evolution from a domestic shipping unit into a diversified global powerhouse at the heart of energy logistics.

Market watchers believe the combination of strong fundamentals, aggressive fleet expansion, robust financial results, and increased liquidity makes Adnoc L&S one of the standout stocks on the Abu Dhabi Securities Exchange. If included in the MSCI Index, the company is expected to attract significant additional flows from passive funds, boosting its share visibility and supporting long-term value creation.

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