Abu Dhabi, UAE – Abu Dhabi National Oil Co., the state oil giant, announced on Tuesday that it has established a price range for the initial public offering (IPO) of its marine and logistics unit. The IPO has the potential to raise up to $607 million and could result in ADNOC Logistics & Services achieving an equity valuation of as much as $4.05 billion, according to the company’s statement.
The price range for the unit has been set at 1.99 dirhams ($0.5420) to 2.01 dirhams per share, marking an important step in the process of bringing the marine and logistics unit to the public market. Abu Dhabi National Oil Co.’s decision to go public with this subsidiary underscores its commitment to enhancing transparency, attracting strategic investors, and unlocking the value of its various business segments.
ADNOC Logistics & Services plays a crucial role in supporting Abu Dhabi National Oil Co.’s oil and gas operations by providing marine and logistics solutions. The subsidiary’s offerings encompass shipping, freight, and other related services that facilitate the transportation of ADNOC’s products and support the company’s global reach.
As a testament to investor confidence, several cornerstone investors have already shown their commitment to the IPO. Al Seer Marine Supplies & Equipment, National Marine Dredging Co., Alpha Oryx Limited, and the Abu Dhabi Pension Fund have jointly committed approximately $180 million, highlighting their belief in the growth potential and long-term prospects of Abu Dhabi National Oil Co. Logistics & Services.
The participation of these cornerstone investors not only provides a significant capital injection but also serves as an endorsement of Abu Dhabi National Oil Co.’s business strategies and its ability to deliver strong performance in the marine and logistics sector.
The IPO of Abu Dhabi National Oil Co. Logistics & Services is part of ADNOC’s broader strategy to optimize its portfolio and unlock value from its non-core assets. By listing the subsidiary, ADNOC aims to attract external investors, diversify its shareholder base, and provide an opportunity for the public to participate in the growth of its marine and logistics operations.
ADNOC has a proven track record of successful IPOs, having previously listed Abu Dhabi National Oil Co. Distribution, its fuel-retailing arm, and ADNOC Drilling, its drilling services subsidiary. These IPOs have not only generated substantial capital but have also attracted considerable interest from local and international investors.
The marine and logistics sector is vital for Abu Dhabi National Oil Co.’s operations, ensuring the smooth transportation of its products and facilitating trade in the global market. With the IPO, ADNOC Logistics & Services aims to further enhance its capabilities, expand its services, and capture new opportunities in the evolving energy landscape.
The IPO process is expected to proceed in accordance with regulatory requirements and market conditions. ADNOC Logistics & Services plans to offer a portion of its shares to both institutional investors and individual retail investors, providing a broad range of market participants with the opportunity to invest in this strategic subsidiary.
ADNOC’s IPO of its marine and logistics unit marks another significant milestone in the company’s ongoing transformation and modernization efforts. By unlocking the value of its various business segments, ADNOC is positioning itself for sustained growth, while contributing to the economic diversification and development goals of Abu Dhabi and the wider UAE.
In conclusion, ADNOC’s announcement of the price range for the IPO of its marine and logistics unit signals a critical step in the process of bringing this subsidiary to the public market. With the potential to raise up to $607 million, ADNOC Logistics & Services aims to achieve an equity valuation of as much as $4.05 billion. The participation of cornerstone investors underscores the confidence in the subsidiary’s growth prospects, while ADNOC’s IPO strategy aligns with its overall vision of optimizing its portfolio and unlocking value from its non-core assets. As the IPO progresses, ADNOC continues to demonstrate its commitment to transparency, attracting strategic investors, and driving sustainable growth in the marine and logistics sector.
