Orders for the IPO of Adnoc’s logistics subsidiary, Adnoc L&S, sold out within minutes of books opening yesterday, Bloomberg reports. The company is selling 1.11 bn shares — a 15% stake — at AED 1.99-2.01 apiece, which would value the subsidiary at up to USD 4.05 bn, according to a statement (pdf). The high end of the spread could see Adnoc raising as much as USD 607 mn from the offering, potentially making it the second biggest IPO in the Middle East this year, after the listing of Adnoc Gas.

The company has already secured USD 180 mn in cornerstone investments: The company entered into cornerstone investment with Al Seer Marine Supplies and Equipment, which pledged USD 70 mn for a portion of the offered shares; National Marine Dredging Company, who pledged USD 30 mn; and ADQ’s Alpha Oryx and the Abu Dhabi Pension Fund, each of which pledged USD 40 mn. The investors have committed to purchasing shares at the final offer price, which will be announced on 25 May, according to the statement. The shares are subject to a 12-month lock-up arrangement, it added.

The timeline:The retail offering is scheduled to remain open until 23 May, with institutional investors having until 24 May to submit their bids. Trading on the company’s shares will begin on the ADX on 1 June.

Refresher: The proceeds raised from the transaction will go towards meeting part of the expenses for Adnoc’s ambitious USD 4-5 bn medium term growth strategy. The strategy includes investments towards expanding the scope of Adnoc subsidiary services, decarbonization efforts, as well as scaling up Adnoc L&S’ shipping, integrated logistics, and services platform operations.

Adnoc has been on an IPO spree for its subsidiaries: The company raised USD 2.5 bn in a listing of its gas subsidiary earlier this year in a transaction which still stands as the world’s second largest IPO of the year thus far. That offering was preceded by earlier listings of other subsidiaries in the Adnoc Group’s portfolio, including the sales of stakes in the company’s drilling unit, fertilizer producer Fertiglobe, and chemical subsidiary Borouge.

Advisors:Moelis & Co has signed on as the independent financial advisor for the offering. Citigroup, First Abu Dhabi Bank, HSBC Bank Middle East, and JP Morgan Securities are acting as global coordinators and bookrunners, while Abu Dhabi Commercial Bank, Arqaam Capital, Crédit Agricole, EFG-Hermes UAE, International Securities and Société Générale will also offer their services as bookrunners. Abu Dhabi Islamic Bank, and Al Maryah Community Bank have been appointed as receiving banks, while First Abu Dhabi Bank was chosen as lead receiving bank.

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