In the first minutes of the first trading session on the Abu Dhabi Financial Market, Thursday, shares of “ADNOC Supply and Services” jumped by more than 50 percent, to reach 3,030 dirhams.
The historic listing of ADNOC Logistics & Services, the global leader in shipping and maritime logistics for the energy sector, has been in exceptional demand making it the highest bid for an IPO globally in 2023, and the second largest listing in the Middle East and North Africa this year so far. After the IPO of “ADNOC Gas” last March, and attracted a total demand from investors of more than 460 billion dirhams (125 billion dollars).
Overall, the offering exceeded the target value by 163 times, making it the highest level ever to exceed the target value for building a price for an IPO in the UAE.
The initial public offering of a 19 percent minority stake in the issued shares of ADNOC Logistics and Services Company achieved total proceeds of about 2.83 billion dirhams ($769 million), after increasing it from 15 percent to meet the large demand from investors, as the public offering was covered. The company’s initial subscription within minutes of opening the door for subscription.
On this occasion, Khaled Al Zaabi, Chief Financial Officer of the ADNOC Group, said: “This offering represents a new historic achievement for the UAE, Abu Dhabi and ADNOC that we are all proud of. The six initial public offerings carried out by ADNOC attracted a total demand of more than 1.41 trillion dirhams (385 billion dirhams). dollars), which establishes Abu Dhabi’s position as a preferred destination for global capital, and the historic offering of ADNOC Logistics and Services Company represents a new chapter in ADNOC’s continuous growth path to create and enhance value, and we look forward to the participation of new shareholders in the company’s continuous growth and development process.
For his part, Captain Abdul Karim Al-Masabi, CEO of ADNOC Logistics and Services, said: “Thanks to the commitment, dedication and expertise of our human cadres and all work teams, we have successfully completed this historic initial public offering of ADNOC Logistics and Services. And as a major enabler for the flow and export of energy resources and products at the global level Global ADNOC Logistics and Services is a leading global company that provides important and specialized services along the supply chain for ADNOC’s business and has distinct capabilities to continue its role in ensuring safe and low-emission energy supplies to the world ADNOC Logistics and Services is implementing a strategic program for growth and development that includes increasing capital expenditures by more than 18.36 billion dirhams ( 5 billion dollars), which enables it to provide attractive opportunities for investors to grow and increase profits in conjunction with the continuous endeavor to reduce the emissions of its operations and achieve an ambitious roadmap for development and sustainable growth.
This is the sixth historic initial public offering that ADNOC has implemented on the Abu Dhabi Stock Exchange since 2017. for gas.” Collectively, the initial public offerings that ADNOC has carried out so far have raised more than 29.38 billion dirhams ($8 billion), achieving a total demand of 1.41 trillion dirhams ($385 billion).
The strong demand for the company’s initial public offering reflects the attractiveness of ADNOC’s assets and Abu Dhabi’s position as a preferred investment destination for global investors.
In addition to ADNOC Logistics and Services’ track record of achieving strong revenue growth while strengthening its geographical reach, the company offers investors attractive and growing dividends. The company intends to pay dividends of 716 million dirhams ($195 million) for the second quarter and second half of 2023 (equivalent to an annual dividend of $260 million). After that, the company expects to increase its dividend by at least 5 percent annually.
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