ADNOC Logistics and Shipping Services’ initial public offering (IPO) of received unprecedented attraction from investors across the world, making it the most sought-after issue of the year.
Total demand for the IPO has surpassed $125 billion or AED 460 billion, resulting in an oversubscription level of 163 times, which is the highest ever recorded for a book-build IPO in the UAE.
The final offer price has been set at AED 2.01 per share, which falls at the upper end of the previously announced price range for the IPO. Analysts had anticipated this outcome, considering the overwhelming demand for the stock. This IPO follows the successful listing of ADNOC Gas earlier this year, which also garnered significant investor interest.
Trading of ADNOC Logistics and Shipping Services shares will commence on June 1. Initially planned as a 15 percent float, the stake was increased to 19 percent due to the immense oversubscription levels observed within minutes of the IPO opening on May 23, according to banking sources.
In the UAE retail offering alone, total demand across the tranches surpassed $31 billion, representing an oversubscription of more than 269 times. This trend of strong local investor interest in blue-chip UAE IPOs has persisted, further solidifying the reputation of these listings.
Khaled Al Zaabi, Group CFO of ADNOC, has expressed satisfaction with the record-setting listing, highlighting the company’s successful track record in bringing six entities to market within five years.
He emphasised ADNOC L&S’s attractiveness as an investment opportunity, underpinned by strong long-term growth prospects and a progressive dividend payout. He also extended a warm welcome to the new investor base, inviting them to partake in ADNOC’s continued growth journey, which contributes to the sustainable development of Abu Dhabi, the UAE, and its shareholders.
The IPO price range had been set between AED 1.99 and AED2.01, and based on the final offer price, the total offer size stands at approximately AED 2.83 billion ($769 million).
Al Zaabi acknowledged that this IPO has generated the highest global demand for an IPO so far this year and achieved the record oversubscription level for a UAE book-build IPO.
The listing implies a market capitalization of around AED14.9 billion (or $4.05 billion) upon listing. This anticipated ADNOC listing is expected to bolster trading volume on the Abu Dhabi Securities Exchange (ADX) throughout June and contribute to the exchange’s recovery compared to its performance in 2022.
Upon listing, ADNOC will retain an 81% stake in the company, while cornerstone investors include Al Seer Marine Supplies & Equipment Co., National Marine Dredging Company, Alpha Oryx Ltd. (ultimately owned by Abu Dhabi Development Holding Company), and Abu Dhabi Pension Fund.
