Abu Dhabi's ADNOC is selling an around 3% stake in its logistics and services unit through a bookbuild offering, it said on Thursday, as the United Arab Emirates state oil company resorts to more secondary share sales in its businesses.
ADNOC said in a statement it would offer up to 222 million shares in ADNOC L&S (ADNOCLS.AD), opens new tab to professional investors in the UAE and institutional investors "elsewhere".
The deal was fully covered by Thursday evening, local time, according to a source familiar with the matter, with indicated demand exceeding the 222 million shares available.
Pricing and allocations are expected on Friday, with settlement early next week.
The deal is expected to increase ADNOC L&S's free float to 22% and "enhance the trading liquidity" of shares in the unit.
Created in 2016, ADNOC L&S exports crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi to more than 100 customers in over 50 countries.
The secondary share sale follows an initial public offering of the business in 2023 that raised $769 million for ADNOC, which currently owns an 81% stake.
Other recent secondary offerings in ADNOC units include in its gas business (ADNOCLS.AD), opens new tab, which raised $2.84 billion in February in one the biggest share sales in the Middle East in recent years.
ADNOC did not disclose the offer price for ADNOC L&S' shares, which closed 2.3% higher at 5.43 dirhams ($1.48) on Thursday. The stock is up around 1.5% in the last year, according to LSEG data.
First Abu Dhabi Bank (FAB.AD), opens new tab, JPMorgan (JPM.N), opens new tab and China International Capital Corporation (601995.SS), opens new tab were among banks appointed as joint global coordinators and joint bookrunners for the offering.
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