ADNOC is planning to conduct an initial public offering (IPO) of its marine and logistics subsidiary, ADNOC Logistics & Services (ADNOC L&S) in June, according to anonymous sources.
This will be the second IPO for one of its businesses this year, following the $2.5B raised from listing its gas business in March. HSBC has been appointed as the joint global coordinator on the syndicate, along with Citigroup, JPMorgan, and First Abu Dhabi Bank, which were selected last year. ADNOC Logistics & Services was formed in 2016 by merging Abu Dhabi National Tanker Co, Petroleum Services Co, and Abu Dhabi Petroleum Ports Operating Co. The company transports crude oil, refined products, dry bulk, and liquefied natural gas from Abu Dhabi to international customers. ADNOC has not commented on the listing plans, and HSBC has not yet responded to a request for comment.
According to data from Dealogic, Middle Eastern companies have raised approximately $21.9B through IPOs in 2022, which is more than half of the total for the wider EMEA region, including Europe and Africa. ADNOC’s CEO, Sultan al-Jaber, is leading the company’s efforts to expand into new energy and low-carbon fuels like ammonia and hydrogen, as well as LNG and chemicals, which are now included in a new business unit alongside the upstream and downstream businesses.
Over the past four years, the company has launched a transformation strategy as part of Abu Dhabi’s plans to diversify the economy and attract foreign investment. ADNOC has been listing units since late 2017, and in the past two years, it has listed Borouge, a petrochemicals company, Fertiglobe, a producer of fertilizers and clean ammonia products, ADNOC Drilling, and ADNOC Gas.
