ADNOC L&S aims to list 15% stake on ADX with May IPO

ADNOC Logistics & Services plc, a global energy maritime logistics leader, on Wednesday announced its intention to proceed with an initial public offering of 15% of its total issued share capital, and to list its shares on the Abu Dhabi Securities Exchange (ADX).

The IPO amounts to 1,109,774,817 shares of ADNOC L&S being offered as part of the UAE Retail Offering as well as the Professional Investor Offering, ADNOC said in a statement.

The retail subscription period is expected to run from May 16 to May 23, while the IPO for qualified investors is expected to run from May 16 to May 24.

The company expects to begin trading on the ADX on June 1.

Commenting on the launch of the ADNOC L&S IPO process, Khaled Al Zaabi, Group Chief Financial Officer at ADNOC, said: “We are very pleased to announce our intention to float a minority stake in ADNOC L&S, our leading energy maritime logistics services provider. As the sixth company ADNOC is bringing to market, ADNOC L&S is ideally placed to drive performance, deliver value, and capitalize on both ADNOC’s ambitious growth roadmap and the growing global demand for lower-carbon, reliable energy supplies.

“The planned offering marks another important milestone for ADNOC and the UAE, and cements ADNOC’s role as a catalyst to further grow and diversify Abu Dhabi’s buoyant capital market. As a sustainability champion within the maritime and logistics sector, ADNOC L&S will play a crucial role in driving the decarbonization of the UAE maritime sector, yet again offering investors a highly compelling investment proposition with exciting growth prospects.”

Captain Abdulkareem Al Masabi, Chief Executive Officer of ADNOC L&S, added: “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. Through our specialized business segments of integrated logistics, shipping, and marine services, we provide cost-competitive and sustainable solutions for the logistics and maritime energy sector.

“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. With high cash flow visibility, a world class asset base, and an experienced management team supported by a highly dedicated workforce, ADNOC L&S is poised for significant growth, and set to continue delivering strong financial and operational performance, while promoting the UAE and ADNOC’s energy transition and decarbonization agenda.”

ADNOC L&S also said it intends to pay dividends twice each financial year – a fixed dividend of $195 million for the second quarter and the second half of this year — equivalent to annualised dividends of $260 million relating to its performance in 2023.