ADNOC sets price range for IPO of marine and logistics unit and aims to raise up to $607 million

(MENAFN)
Abu Dhabi National Oil Co. (ADNOC) announced Tuesday that it has set a price range for the initial public offering (IPO) of its shipping and logistics division ADNOC Logistics & Services. The IPO has the potential to generate proceeds of up to $607 million, which equates to an equity valuation of the entity of approximately $4.05 billion.

According to the company, the price range for the unit has been set at 1.99 dirhams (US$0.5420) to 2.01 dirhams per share. As part of the IPO, key investors including Al Seer Marine Supplies & Equipment, National Marine Dredging Co., Alpha Oryx Limited and the Abu Dhabi Pension Fund have pledged a total of approximately US$180 million.

ADNOC is expected to raise between $601 million and $607 million through the sale of approximately 1.1 billion shares, representing 15 percent of the issued share capital of its maritime logistics services unit. The subscription period for the share offering is scheduled to run from May 16th to 24th.

In March, Reuters reported that ADNOC was preparing to list ADNOC Logistics & Services in June, marking the second IPO of the year for the Abu Dhabi-based oil giant. In early March, ADNOC raised $2.5 billion through an IPO of its gas business.

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

ADNOC Logistics & Services was formed in 2016 from the merger of Abu Dhabi National Tanker Co., Petroleum Services Co. and Abu Dhabi Petroleum Ports Operating Co. The unit is responsible for the transportation of crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi to its international customers.

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