ADNOC L&S soars over 50% above listing price on ADX

Image credit: ADNOC Group

ADNOC Logistics & Services (L&S) surged close to 58 per cent above its listing price on its market debut on Thursday, the state news agency WAM reported.

ADNOC L&S climbed from its listing price of Dhs2.01 to close as high as Dhs3.13.

The company aims to pay a fixed dividend amount of $195m for the second quarter and the second half of 2023 (equivalent to annualised dividends of $260m.

The company expects to increase the annual dividend per share by at least 5 per cent per annum.

Now listed on @ADX_AE, ADNOC Logistics & Services offers a highly compelling growth opportunity for investors through its $5 billion medium term capital expenditure program. pic.twitter.com/rptEM9rNZI

— ADNOC Group (@ADNOCGroup) June 2, 2023

Successful IPO for ADNOC L&S

According to a Bloomberg report, ADNOC Logistics & Services drew orders worth $125 bn for its $769m initial public offering in Abu Dhabi, as investors flocked to the share sale amid a dearth in deals in other regions.

The IPO had an oversubscription level of 163 times in aggregate, the highest-ever oversubscription level for a UAE bookbuild IPO.

Abu Dhabi National Oil Company (ADNOC) sold 1.41 billion shares — or a 19 per cent stake — in ADNOC L&S, its maritime logistics unit, at Dhs2.01  each, the top of a narrow range that started at Dhs1.99, valuing the company at $4.05bn.

As the sixth company that ADNOC has listed on ADX in the past five years, ADNOC L&S follows the landmark IPOs of ADNOC Distribution, ADNOC Drilling, Fertiglobe, Borouge and ADNOC Gas, and further cements ADNOC’s instrumental role as a primary catalyst for the diversification and growth of Abu Dhabi’s capital market and the UAE’s status as a go-to destination for global capital.

In other news, the com[any announced new agreements with more than 60 UAE-based and international companies to locally manufacture critical non-oil products in its supply chain, at the Make it in the Emirates Forum.

The new agreements will help the company achieve its target to locally manufacture Dhs70bn ($19bn) worth of products in its procurement pipeline which was announced at the last Make it in the Emirates forum in June 2022.

In addition, the agreements have enabled Dhs2.84bn ($774m) to flow back into the UAE economy through industrial investments by suppliers in expanding or establishing new facilities.

ADNOC also accelerated its Dhs70bn target to 2027, ahead of the previous target of 2030. Since the launch of Make it in the Emirates, ADNOC has more than tripled its direct spend with local manufacturers.

ADNOC’s Make it in the Emirates agreements are estimated to contribute to 10 per cent of the Dhs172bn ($46.9bn) target in the Abu Dhabi Industrial Strategy.