The “ADNOC Logistics and Services” offering saw exceptional demand, making it the highest demand for public underwriting globally this year, as it saw strong demand from individuals and professional investors in the Emirates, totaling more than 460 billion dirhams (125 billion dollars), exceeding the total target value 163 times, reaching the highest level of exceeding the target value ever for the construction of an price for an IPO listed in the UAE.
On this occasion, Khaled Al Zaabi, Chief Financial Officer of ADNOC Group, said: “We are pleased with the unique demand seen by ADNOC Logistics and Services from the segment of individual investors in the United Arab Emirates as well as investment institutions. local and international. This subscription witnessed the strongest IPO demand globally so far this year.” This is ADNOC’s historic sixth initial public offering of a minority stake in one of its subsidiaries in five years, and the offering represents a further achievement under ADNOC’s “Continue to Create and Enhance Value” program, as it confirms the role of “ADNOC Logistics and Services” in providing business opportunities. investment rewards backed by strong, long-term growth prospects and progressive dividends. While continuing its pivotal role in attracting global capital, “ADNOC” welcomes the base of new investors and welcomes their participation in the continued growth and development of the company while continuing its efforts to achieve sustainable growth. for the UAE, Abu Dhabi and its shareholders.
ADNOC Logistics and Services is the sixth company in which ADNOC has offered a minority stake on the Abu Dhabi Stock Exchange in the past five years, and comes after the successful IPOs of ADNOC Distribution, ADNOC Drilling, Fertiglobe and Borouge and ADNOC Gas, which reinforces ADNOC’s central role as a major catalyst for the diversification and growth of financial markets in the United Arab Emirates and Abu Dhabi, and solidifies the country’s position as a preferred destination for global capital.
The initial public offerings that ADNOC has collectively made so far have raised 29.38 billion dirhams ($8 billion), reaching a total demand of more than 1.41 trillion dirhams ($385 billion), which which supports ADNOC’s ambitious growth strategy and establishes the UAE’s position as a preferred destination for global investment.
ADNOC L&S has a proven track record of local and international growth, operational excellence and effective cost control, resulting in significant profits and strong financial results. According to the unaudited financial results, which reflect the acquisition of “Zakher Marine International” in 2022, the company’s revenues amounted to 8.4 billion dirhams (2.3 billion dollars), while the adjusted profit before interest, taxes, depreciation and amortization of debt amounted to 2.2 billion dirhams ($599.3 million) for the year ending December 31, 2022, and the company’s revenues increased to a compound annual growth rate of more than 20% over the years 2017-2022.
ADNOC Logistics and Services is implementing a strategy to expand its scope of activity based on a medium-term program to increase capital expenditure amounting to 18.36 billion dirhams (5 billion dollars ), which offers investors attractive and significant growth opportunities.
ADNOC Logistics and Services aims to pay an attractive dividend of 716 million dirhams ($195 million) for the second quarter and the second half of 2023 (equivalent to an annual dividend of $260 million). After that, the company plans to increase the dividend by 5% per year in the medium term. The shares of “ADNOC Logistics and Services” are expected to be listed on the Abu Dhabi Stock Exchange on June 1, 2023. Upon listing, “ADNOC” will continue to hold a majority stake in “ADNOC Logistics”. % of business.
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