Adnoc raised AED 1.2 bn from the secondary sale of a 3% stake in Adnoc Logistics & Services (Adnoc L&S), according to a statement. The sale was priced at AED 5.25 per share for institutional investors, which it says is the tightest discount for a secondary stake sale in the region.

The sale attracted AED 8.1 bn in orders, nearly 7x the offering size, through an accelerated bookbuilding process, making it one of the most heavily oversubscribed follow-on offerings in the region.

Demand drivers: Adnoc said the strong appetite was driven by L&S’ growth trajectory since its 2023 IPO and record financial performance. Earlier this year, all 16 international financial institutions covering the firm issued a “strong buy” or “buy” recommendation after it posted strong 1H earnings — with its bottom line rising 5% y-o-y to USD 420 mn and its top line going up 40% y-o-y to USD 2.4 bn.

Paving the way for MSCI inclusion: The transaction lifts Adnoc L&S’ freefloat to 22% from 19%, a move expected to enhance trading liquidity and open the door for the company’s potential inclusion in the MSCI Emerging Markets Index. Adnoc, which retains majority control of the company, has committed to a six-month lock-up on unsold shares.

The bigger picture: This is Adnoc’s latest move to deepen liquidity and attract global capital to Abu Dhabi’s equity market. The company made similar moves with other listed subsidiaries: earlier this year, it raised USD 2.8 bn from a secondary sale in Adnoc Gas that boosted freefloat and helped it secured MSCI and FTSE index inclusion. Past secondary offerings in Adnoc Distribution and Adnoc Drilling also led to sharp increases in trading activity and foreign ownership.

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