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(Bloomberg) – Abu Dhabi’s major energy company will sell a 15 percent stake in its logistics and shipping unit in an initial public offering, kicking off a second listing of one of its businesses this year.
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ADNOC said in a statement on Wednesday that it will issue about 1.11 billion shares in Adnoc Logistics & Services. The company will announce the price range and begin taking investor orders on May 16, with final pricing scheduled for May 25. Adnoc Logistics’ shares are expected to start trading on June 1, according to the statement.
Just a few months ago, state-owned Adnoc’s gas business raised $2.5 billion in the second-largest global IPO so far this year.
The Persian Gulf remains a relatively busy IPO market amid the global economic downturn. Still, oil prices have retreated from the highs reached last year following Russia’s invasion of Ukraine, and fears of a U.S. recession and bank failures have weighed on commodities recently, which has had a strong impact on Gulf stocks.
About $3.5 billion has been raised through listings in the Middle East through 2023, according to data compiled by Bloomberg — most of them in Abu Dhabi. That’s down sharply from $11.4 billion at this time last year, as markets such as Saudi Arabia have remained calm and there has been no privatization in Dubai, helping to boost deal volumes in 2022.
The company has been expanding its fleet in response to rising demand from the state-owned enterprise’s growing upstream and downstream businesses. It recently signed a five-year contract with Adnoc Offshore to provide integrated logistics services including port services and warehouse operations.
First Abu Dhabi Bank PJSC, Abu Dhabi Commercial Bank PJSC, EFG Hermes UAE LLC and HSBC Bank Middle East Ltd. are the joint lead managers for the IPO.
– With the assistance of Filipe Pacheco.
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