Wednesday 10 May 2023

Adnoc to Sell 15% Stake in Logistics Unit in #AbuDhabi IPO - Bloomberg

Adnoc to Sell 15% Stake in Logistics Unit in Abu Dhabi IPO - Bloomberg

Abu Dhabi’s main energy company will sell a 15% stake in its maritime logistics unit in an initial public offering, kicking off the second listing of one of its businesses this year.

Abu Dhabi National Oil Co. will offer about 1.11 billion shares in Adnoc Logistics & Services, it said in a statement on Wednesday. The company will announce the price range and start taking investor orders on May 16, with final pricing slated for May 25. Shares are expected to begin trading June 1.

The sale comes months after state-owned Adnoc raised $2.5 billion in the listing of its gas business, which is the world’s second-biggest IPO of the year so far. The company has also sold stakes in some other portfolio businesses over the past two years — including in its drilling unit, chemicals firm Borouge and fertilizer company Fertiglobe.

Those share sales came amid a rush of listings in the Persian Gulf, which has remained a relatively busy market amid a global slump. Still, oil prices have come off their highs reached last year in the wake of Russia’s invasion of Ukraine. Fears of a recession and bank failures in the US have recently put pressure on the commodity, which strongly influences Gulf stock markets.

About $3.5 billion has been raised so far in 2023 through listings in the Middle East — the bulk of it in Abu Dhabi, data compiled by Bloomberg show. That’s down sharply from the $11.4 billion fetched by this time last year, as markets like Saudi Arabia have remained quiet and there haven’t been any privatizations in Dubai, which helped boost volumes in 2022.

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