ADNOC from the United Arab Emirates offers 15% of the shares in the IPO of the logistics unit

DUBAI, May 10 (Reuters) – (This May 10 story has been corrected to say 1.1 billion in paragraph 2 instead of million.)

Abu Dhabi-based oil giant ADNOC intends to offer 15% of its shares in ADNOC Logistics & Services unit (ADNOC L&S) in an initial public offering (IPO) on the Abu Dhabi Stock Exchange, the company said on Wednesday.

ADNOC will offer approximately 1.1 billion shares of its maritime logistics services division, which is expected to list on June 1, subject to market conditions, the statement said. The subscription period for the share offering is scheduled to run from May 16th to 24th.

Reuters reported in March that ADNOC is preparing to list ADNOC L&S in June.

“As the sixth company to bring ADNOC to market, ADNOC L&S is ideally positioned to increase performance, deliver value and capitalize on both ADNOC’s ambitious growth plan and growing global demand for lower-carbon, reliable power supplies,” Khaled Al Zaabi, chief financial officer of ADNOC Group, said in the statement.

This will be the Abu Dhabi oil giant’s second IPO this year after raising $2.5 billion from its gas business in March.

Citigroup Global Markets Limited, First Abu Dhabi Bank, HSBC Bank Middle East and JP Morgan have been appointed joint global coordinators and joint bookrunners and Moelis & Co is acting as independent financial advisor on the IPO.

ADNOC L&S supplies crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi to its international customers. It was formed in 2016 from a merger between Abu Dhabi National Tanker Co, Petroleum Services Co and Abu Dhabi Petroleum Ports Operating Co.

Reporting by Rachna Uppal; Edited by Sherry Jacob-Phillips

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