Abu Dhabi National Oil Company (ADNOC) has announced the price range for the initial public offering (IPO) of its logistics and shipping subsidiary, which could raise up to $607m
The company will sell 1.1 billion shares, representing a 15% stake in ADNOC Logistics & Services (AL&S).
The oil giant has set the price range between Dh1.99 ($0.54) to Dh2.01 ($0.55) per share, which implies an equity value of $4.01bn to $4.05bn.
The subscription period will last until Tuesday, 23 May 2023 with listing scheduled to happen on 1 June 2023.
AL&S and selling shareholders have already signed a deal with cornerstone investors, who have pledged to invest $180m.
Cornerstone investors include Al Seer Marine Supplies & Equipment, National Marine Dredging Company, Alpha Oryx (ultimately owned by Abu Dhabi Holding Development Company), and Abu Dhabi Pension Fund.
Announcing the IPO last week, AL&S CEO Abdulkareem Al Masabi said: “ADNOC L&S is a vital component of the UAE’s energy ecosystem, providing mission-critical logistics infrastructure and services for the production and global transfer of energy commodities to customers around the world.
“Our planned IPO offers an exciting opportunity to accelerate our growth, supporting ADNOC Group with its ambitious growth strategy, while further expanding the services provided to our customers and exploring new geographical areas and business verticals.”
The AL&S IPO comes after the parent company raised $2.5bn by listing its gas processing and marketing company, ADNOC Gas in March.
The company has also listed Borouge, a producer of petrochemicals, Fertiglobe, a manufacturer of fertilisers and clean ammonia products, and ADNOC Drilling over the past two years.
