ADNOC, the government-owned oil company of Abu Dhabi, has announced its plan to sell 15% of ADNOC L&S, its logistics and shipping unit, through an initial public offering (IPO). This move follows the listing of ADNOC Gas earlier this year and is part of the company’s strategy to hive off non-core businesses.
According to a statement released by the company on Wednesday, the sale will involve the disposal of 1,109,774,817 shares, which represents 15% of the total issued share capital of ADNOC L&S.
Captain Abdulkareem Al Masabi, Chief Executive Officer of ADNOC L&S, said “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.”
ADNOC L&S has disclosed its intention to distribute a fixed cash dividend of $195M for both the second quarter and second half of 2023. The IPO for the company will be managed by joint lead managers including First Abu Dhabi Bank PJSC, Abu Dhabi Commercial Bank PJSC, EFG Hermes UAE LLC and HSBC Bank Middle East Ltd.
The subscription period for the IPO will commence on May 16, during which the company will reveal the price range. Final pricing is set for May 25, with shares in ADNOC L&S expected to commence trading on June 1, as per the statement.
