AD National Oil Co. to offer 1.11 billion shares in Adnoc Logistics & Services
ALBAWABA – The main energy company in Abu Dhabi, the capital of the United Arab Emirates (UAE), announced on May 10 that it will be selling 15% of its equity shares in the Adnoc logistics unit, according to Bloomberg.
Adnoc (Abu Dhabi National Oil Company) will offer about 1.11 billion shares in Adnoc Logistics and Services (L&S), to be traded June 1, in an initial public offering (IPO).
The price range has yet to be announced, according to the statement carried by Bloomberg.
Adnoc is reportedly to announce the price range and start taking investor orders on May 16, with final pricing slated for May 25.
The state-owned company had already raised $2.5 billion in the listing of its gas business. The deal was the world’s second-largest IPO of the year.
Since the beginning of 2023, the Middle East region has seen several IPO listings at a total of $3.5 billion. The bulk of which was in Abu Dhabi, according to Bloomberg’s data.
In 2022, the region saw a raging spike in privatization deals and listings, totaling $11.4 billion by May.
However, Bloomberg explained that the regional market has been relatively quiet so far this year. Saudi Arabia and Dubai have not carried out any notable privatization projects in 2023, yet.
On the sidelines of the EFG Hermes One-on-One Conference in Dubai, in March, EFG Hermes Holding Group CEO Karim Awad announced that the company is currently working on five IPOs in the GCC market.
“The IPO markets in MENA have seen strong momentum last year led by Gulf Cooperation Council (GCC) countries, especially UAE and Saudi Arabia,” Awad said, as reported by Arabian Business.
According to the CEO, the IPOs are expected to launch between the second and fourth quarters of the year 2023, in different sectors.
As of 2021, a report by Strategy&, a PwC subsidiary, highlighted that GCC countries can make up to $287 billion from the sale of shares in publicly listed companies alone.
