In the first minutes of the first trading session on the Abu Dhabi financial market on Thursday, shares of “ADNOC Supply and Services” jumped by more than 50%, reaching 3,030 dirhams.
The historical listing of ADNOC Logistics & Services, the world leader in shipping and maritime logistics for the energy sector, has been the subject of exceptional demand, making it the most high for a global IPO in 2023, and the second largest listing in the Middle East and North. Africa this year so far, following the IPO of “ADNOC Gas” last March, and attracted total investor demand of more than 460 billion dirhams ($125 billion).
Overall, the supply exceeded the target value by 163 times, making it the highest level ever to exceed the target value for the construction of a price for an IPO in the UAE.
The initial public offering of a 19% minority stake in the issued shares of ADNOC Logistics and Services Company generated total proceeds of approximately 2.83 billion dirhams ($769 million), after raising it by 15% to meet the strong demand from investors, while the public The offer was covered The initial subscription of the company a few minutes after the opening of the door to the subscription.
On the occasion, Khaled Al Zaabi, Chief Financial Officer of ADNOC Group, said: “This offering represents a new historic achievement for the United Arab Emirates, Abu Dhabi and ADNOC of which we are all proud. The six IPOs carried out by ADNOC have attracted a total demand of more than 1,410 billion dirhams (385 billion dirhams), which establishes Abu Dhabi’s position as a preferred destination for global capital, and the historical offer of ADNOC Logistics and Services Company represents a new chapter in ADNOC’s continued growth path of value creation and enhancement, and we look forward to the participation of new shareholders in the company’s continued process of growth and development.
For his part, Captain Abdul Karim Al-Masabi, CEO of ADNOC Logistics and Services, said: “Thanks to the commitment, dedication and expertise of our human executives and all work teams, we successfully completed this historic IPO of ADNOC Logistics. And as a major enabler for the flow and export of energy resources and products globally Global ADNOC Logistics and Services is a leading global company providing extensive and specialized services throughout the supply chain for ADNOC’s business and has distinct capabilities to continue its role in ensuring a secure, low-emission energy supply globally ADNOC Logistics and Services is implementing a strategic growth and development program that includes increasing expenditure investment of more than 18.36 billion dirhams (5 billion dollars), which allows it to provide attractive opportunities for investors to grow and increase their profits in conjunction with the continuous effort to reduce emissions of its operations and achieve an ambitious roadmap for development and sustainable growth.
This is the historic sixth initial public offering ADNOC has made on the Abu Dhabi Stock Exchange since 2017 for gas. Collectively, the initial public offerings ADNOC has made so far have raised more than 29.38 billion dirhams ($8 billion), reaching a total demand of 1.41 trillion dirhams ($385 billion).
Strong demand for the company’s IPO reflects the attractiveness of ADNOC’s assets and Abu Dhabi’s position as a preferred investment destination for global investors.
Along with ADNOC Logistics and Services’ track record of delivering strong revenue growth while expanding its geographic reach, the company offers investors attractive and growing dividends. The company intends to pay dividends 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 its dividend by at least 5% per year.
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