Abu Dhabi National Oil Company (ADNOC) has decided to increase the number of shares of ADNOC Logistics & Services being offered to the market in the ongoing initial public offering (IPO) following significant interest from investors.
The Selling Shareholder has exercised its right set out in the prospectus to increase the number of ordinary shares offered by its subsidiary company following approval from the UAE Securities and Commodities Authority (SCA).
The state-owned company had earlier decided to offer 1,109,774,817 ordinary shares, but has now increased it to 1,405,714,765 ordinary shares, equivalent to 19 percent of the company’s total issued share capital.
The decision to increase the size of the Offering is based on significant investor demand across all tranches and to reflect the company’s commitment to a supportive trading environment for the company’s stock post-Admission.
If all of shares in the IPO are sold, ADNOC will raise approximately $762 million to $769 million (AED2.8 billion to AED2.83 billion). The final offer price is expected to be announced on Thursday, 25 May.
ADNOC Logistics & Services IPO: A landmark listing
Group CFO Khaled Al Zaabi commented: “We are delighted to announce that we will be increasing the offer size for the ADNOC Logistics & Services IPO, which is set to be the second-largest market debut so far this year in the Middle East region, marking another remarkable accomplishment for ADNOC in its ongoing value creation programme.
“We have witnessed exceptional demand across all tranches, with significant interest across the local, regional and global investment community in this unique opportunity, reflecting ADNOC L&S’ strong growth prospects as a critical enabler of Abu Dhabi and the UAE’s supply of energy to the world while driving the decarbonisation of the UAE maritime sector.
“The ADNOC L&S IPO will be the next landmark listing in Abu Dhabi, cementing ADNOC as the key catalyst to attract a broader and deeper pool of global capital, further bolstering the local financial equity market.”
The oil company has also decided to increase the size of the First Tranche of the Offering (reserved for First Tranche Subscribers from nine percent to 12 percent of the Offering. The Third Tranche (reserved for employees of ADNOC group companies) represents three percent of the Offering, while the remaining 85 percent (1,194,857,550 shares) is reserved for investors in the Professional Investor Offering.
The subscription period for the IPO is unchanged and will continue until 23 May for individuals and other investors in the UAE, employees of ADNOC group companies residing in the UAE; and national retirees of ADNOC group companies residing in the UAE. For professional and other investors in a number of countries, the IPO closes on Wednesday, 24 May.
The final offer price per share will be determined through a book building process and is expected to be announced on Thursday, 25 May.
Details of the Offering are available in the Arabic and English language UAE Prospectus and are available on the website.
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