UAE: Adnoc to list logistics unit at Dh2.01 per share – News

The final offer implies a market value of around $4.05 billion (AED14.9 billion)

ADNOC on Wednesday announced the final offer for the initial public offering (IPO) of Adnoc of Logistics & Services. At AED 2.01 per share, this means that Adnoc L&S has a market capitalization (at entry) of approximately US$4.05 billion (equivalent to approximately AED 14.9 billion).

Total demand across all segments of the UAE’s retail offerings exceeded USD 31 billion (more than 269 times oversubscribed).

The price range for the IPO was previously set at between Dh1.99 and Dh2.01 per share, meaning the offering was priced at the high end of the previously announced offering price range following strong demand from local and international investors. Based on the final offering price, the total issuance size is approximately US$769 million (approximately AED 2.83 billion).

The book-building process generated orders totaling over USD 125 billion (equivalent to over AED 460 billion) from: professional investors in several countries, including the UAE; and UAE retail investors, including those residing in the UAE employees of Adnoc Group companies and UAE national retirees of Adnoc Group companies residing in the UAE, representing a total oversubscription of 163 times, the highest ever for a UAE book-building IPO.

Khaled Al Zaabi, Chief Financial Officer, Adnoc Group, said: “We are delighted to see the unprecedented demand for Adnoc L&S shares from retail investors in the UAE, as well as the local, regional and global investor community. The offering represents the largest global demand for IPOs so far this year , and achieved the highest ever oversubscription for a book-run IPO in the UAE. This record listing is Adnoc’s sixth successful listing in five years and marks the next significant achievement in our ongoing value creation programme. Adnoc “L&S is an attractive value proposition, underpinned by strong and long-term growth credentials and a progressive dividend payment. Strengthening our role as a key catalyst for attracting global capital, as we continue to contribute to Abu Dhabi, UAE and our Shareholders delivering sustainable growth, Adnoc welcomes its new investor base to participate in our continued growth story.”

Adnoc L&S confirms that the previously announced increased issue size of 1,405,714,765 common shares, representing 19% of the company’s total issued share capital, has been distributed in full, with gross proceeds of approximately $769 million, the net proceeds of which will be received by Adnoc . Admissions are expected to open on 1 June 2023 at 10:00 am UAE time, subject to customary closing conditions, under the ticker symbol “AdnocLS” and ISIN “AEE01268A239”.

Following admission, Adnoc will continue to own an 81% majority stake in the company. Cornerstone investors – Al Seer Marine Supplies & Equipment Co; National Marine Dredging Company; Alpha Oryx Limited (owned by Abu Dhabi Development Holding Company LLC) and Abu Dhabi Pension Fund – will subscribe directly or indirectly 23.4% in each case issuance (by professional investors). Subject to certain conditions, cornerstone investors will not offer, sell or announce offers for any shares they have acquired within 12 months of admission.

After the close of the subscription period for this offering, the size of the first tranche is set at 12%; the second tranche (reserved for investors in the professional investor offering) at 85%; the third tranche (for Adnocs residing in the UAE) Employees of the group companies and UAE national retirees of Adnoc group companies residing in the UAE are retained) at 3%. Investors participating in the UAE retail offering will receive SMS confirmation of their respective allocations on 30 May.

Moelis & Company UK LLP DIFC Branch acted as the Company’s independent financial advisor.

Citigroup Global Markets Limited, First Abu Dhabi Bank PJSC, HSBC Bank Middle East Limited and J.P. Morgan Securities Limited acted as joint global coordinators and joint bookrunners. Abu Dhabi Commercial Bank PJSC, Arqaam Capital Limited, Crédit Agricole Corporate and Investment Bank, EFG-Hermes UAE Limited (jointly with EFG Hermes UAE LLC), International Securities LLC and Société Générale acted as joint bookrunners. First Abu Dhabi Bank PJSC acted as lead receiving bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC and Al Maryah Community Bank acted as receiving banks.

The Shariah Supervisory Committees of the FAB and ADCB have issued statements confirming that they consider the offering to be in compliance with Shariah principles.