ADNOC Logistics & Services (ADNOC L&S), the logistics and shipping arm of Abu Dhabi National Oil Company (ADNOC), made a grand entrance on the Abu Dhabi Securities Exchange (ADX), with its shares surging an impressive 58%.
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A grand entrance
Trading under the ticker symbol “ADNOCLS” on the ADX, the shares climbed to $ 0.86 (AED3.17) on Thursday noon.
The company’s final offer price stood at $0.57(AED2.01) per share, which was at the higher end of the previously set range of $ 0.54 to $0.57 (AED1.99 to AED2.01) per share, implying a total market capitalisation of approximately $4.05 billion at the time of the listing.
By the end of Thursday’s trading, the company’s shares stood at $0.85 (AED3.13) per share, marking a 56% upswing above the listing price.
Record oversubscription
ADNOC’s logistics unit raised nearly $769 million (AED2.83 billion) from the sale of a 19% stake, with the initial public offering receiving more than $125 billion (AED460 billion) in bids, marking the highest-ever oversubscription for a UAE book-build IPO at a staggering 163 times.
ADNOC will retain an 81% majority stake in the company.
The IPO marks ADNOC’s second listing in 2023— and the sixth in five years— following the successful listing of its gas business, ADNOC Gas, in March, which raised $2.5 billion and claimed the title of the world’s largest global initial public offering at the time and the largest ever on the ADX.
“This is a truly historic moment— ADNOC’s six IPOs to-date have drawn over $385 billion of total demand, further cementing Abu Dhabi’s standing as a go-to destination for global capital,” ADNOC Group Chief Financial Officer, Khaled Al Zaabi said, noting that the “record-setting” market debut of Adnoc L&S marks the next extraordinary achievement in the group’s ongoing value-creation journey.
Global expansion
ADNOC L&S is currently focused on a global expansion strategy aimed at offering an expanded range of services to its customers while supporting the growth of ADNOC’s upstream and downstream operations.
With a diversified fleet of 245 owned vessels and 600 vessels managed annually, along with a 1.5 million-square-metre integrated logistics base, the company has established its position as a global maritime leader and a key player in the global energy market.
Citigroup, First Abu Dhabi Bank, HSBC, and JP Morgan Chase served as joint global coordinators for the ADNOC L&S IPO.
