Abu Dhabi’s most important vitality firm will promote a 15% stake in its logistics and delivery unit in an preliminary public providing, kicking off the second itemizing of one in all its companies this yr.
Abu Dhabi Nationwide Oil Co. will provide about 1.11 billion shares in Adnoc Logistics & Providers, it mentioned in an announcement on Wednesday. The corporate will announce the value vary and begin taking investor orders on Might 16, with ultimate pricing slated for Might 25. Shares are anticipated to start buying and selling June 1.
The sale comes months after state-owned Adnoc raised $2.5 billion within the itemizing of its fuel enterprise, which is the world’s second-biggest IPO of the yr thus far. The corporate has additionally bought stakes in another portfolio companies over the previous two years — together with in its drilling unit, chemical substances agency Borouge and fertilizer firm Fertiglobe.
These share gross sales got here amid a rush of listings within the Persian Gulf, which has remained a comparatively busy market amid a world stoop. Nonetheless, oil costs have come off their highs reached final yr within the wake of Russia’s invasion of Ukraine. Fears of a recession and financial institution failures within the US have just lately put stress on the commodity, which strongly influences Gulf inventory markets.
About $3.5 billion has been raised thus far in 2023 by means of listings within the Center East — the majority of it in Abu Dhabi, knowledge compiled by Bloomberg present. That’s down sharply from the $11.4 billion fetched by this time final yr, as markets like Saudi Arabia have remained quiet and there haven’t been any privatizations in Dubai, which helped enhance volumes in 2022.
“It’s a time for creating worth and enabling development,” Musabbeh al Kaabi, government director at Adnoc, mentioned on Bloomberg Tv Wednesday. “The IPO is certainly for native and worldwide traders. We’re very assured about this market right here and the area.”
Adnoc Logistics plans to pay an annualized 2023 money dividend of $260 million and expects to extend this by no less than 5% yearly. The agency, which has been increasing its fleet to deal with elevated demand from the state-owned agency’s companies, is focusing on capital expenditure $4 billion to $5 billion within the medium time period.
As a part of Adnoc’s efforts to bolster its offshore oil, pure fuel and wind companies, the agency acquired privately-owned ZMI Holdings in July and folded it underneath its logistics unit. Together with ZMI, Adnoc Logistics’ proforma 2022 income was $2.29 billion, on adjusted earnings of slightly below $600 million.
Adnoc Group corporations accounted for practically three-quarters of whole gross sales for the yr ended December 31, 2022, the agency mentioned. It just lately signed a five-year contract with Adnoc Offshore to offer built-in logistics companies together with port companies and warehouse operations.
Citigroup Inc, First Abu Dhabi Financial institution PJSC, HSBC Holdings Plc and JPMorgan Chase & Co. have been appointed as joint world coordinators and joint bookrunners. Abu Dhabi Industrial Financial institution PJSC, Arqaam Capital Restricted, Credit score Agricole SA, EFG-Hermes, Worldwide Securities and Societe Generale SA are joint bookrunners for the providing.
Moelis & Co. is the unbiased monetary adviser.
–With help from Filipe Pacheco, Kateryna Kadabashy, Manus Cranny and Sarah Halls.