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Adnoc has upped the size of the offering of its logistics unit, Adnoc L&S, on the back of strong investor demand, according to a company statement (pdf). ADNOC is now offering a 19% stake (1.41 bn shares), up four percentage points from its originally planned 15% stake sale (1.11 bn shares). The offering could now raise up to USD 769 mn if the IPO prices at the top end of the set USD 1.99-2.01 price range. The subscription period for the retail tranche ends today, while the tranche for investors will remain open until tomorrow. Trading on the company’s shares will begin on the ADX on 1 June.
The breakdown: The company has increased the size of the retail tranche to 12% of the total offering, up from 9% originally, while the second tranche for institutional investors accounts for 85% of the sale. The third tranche — reserved for employees of Adnoc group and retirees — accounts for the remaining 3% of the offering.
“We have witnessed exceptional demand across all tranches, with significant interest across the local, regional and global investment community in this unique opportunity, reflecting Adnoc L&S’ strong growth prospects as a critical enabler of Abu Dhabi and the UAE’s supply of energy to the world while driving the decarbonization of the UAE maritime sector,” Group CFO of Adnoc Khaled Al Zaabi said.
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.
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.
