• Business

ADNOC to sell 15% of its logistics and services division through an IPO.

by Swati Gupta

May 10, 2023 19

Abu Dhabi National Oil Company (Adnoc) has announced that it plans to sell a 15% minority stake in Adnoc Logistics & Services (Adnoc L&S) through an initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX). The IPO is expected to open on May 16, 2023, subject to regulatory approvals and other relevant considerations.

Abu Dhabi National Oil Company L&S is a vital logistics services provider to Abu Dhabi National Oil Company Group, offering critical and highly-specialized services across the energy value chain. With a world-scale operating platform, the company has one of the largest and most diverse shipping fleets in the region. It is also among the largest operator and owner of self-propelled Jack-up barges and operates one of the largest integrated energy supply bases in the UAE. Additionally, Adnoc L&S provides shipping, end-to-end logistics, and marine services to its customers.

The offering of a 15% stake in Adnoc L&S is part of Adnoc’s ongoing strategy to unlock value and maximize shareholder returns. The IPO will enable Abu Dhabi National Oil Company to broaden its shareholder base, increase its financial flexibility, and support its ambitious growth plans.

In a statement, Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Group CEO, said, “The IPO of Abu Dhabi National Oil Company L&S represents an important milestone in Adnoc’s ongoing transformation and marks a significant step in our journey to create long-term, sustainable value for the UAE and our stakeholders.”

He added, “Adnoc L&S is a critical enabler of Abu Dhabi National Oil Company’s strategic objectives, providing mission-critical logistics services across the energy value chain. With a strong leadership team and a proven track record of delivering value to our customers, we are confident that Abu Dhabi National Oil Company L&S will continue to thrive as a publicly listed company and create value for its shareholders.”

The IPO will provide investors with an opportunity to invest in a leading global energy maritime and integrated logistics leader. Abu Dhabi National Oil Company L&S has a strong competitive position in the UAE, and its logistics and services capabilities are integral to Adnoc’s operations across the upstream, midstream, and downstream segments of the energy value chain.

Abu Dhabi National Oil Company L&S is also well-positioned to capitalize on the growing demand for logistics services in the region, driven by increasing trade flows and the expansion of the UAE’s ports and industrial zones. The company’s integrated energy supply bases are strategically located in key industrial hubs, providing a competitive advantage and enabling it to offer end-to-end logistics solutions to its customers.

The IPO of Abu Dhabi National Oil Company L&S follows the successful listing of Abu Dhabi National Oil Company Distribution on the Abu Dhabi Securities Exchange in 2017. Adnoc Distribution’s IPO was the largest in the UAE since 2007, and it raised approximately $1.2 billion.

Abu Dhabi National Oil Company has been implementing a series of initiatives to drive efficiencies, optimize its portfolio, and maximize value across its operations. In February 2021, Abu Dhabi National Oil Company announced its new strategic partnership model, which aims to attract foreign investment and technology into the UAE’s energy sector. The model involves the creation of new investment opportunities across Adnoc’s upstream, midstream, and downstream businesses, with a focus on creating long-term, sustainable value for the UAE and its stakeholders.

Adnoc L&S is a vital logistics services provider to Abu Dhabi National Oil Company Group, offering critical and highly-specialized services across the energy value chain. With a world-scale operating platform, the company has one of the largest and most diverse shipping fleets in the region. It is also among the largest operator and owner of self-propelled Jack-up barges and operates one of the largest integrated energy supply bases in the UAE. Additionally, Adnoc L&S provides shipping, end-to-end logistics, and marine services to its customers.

The IPO of Adnoc L&S is a significant step in Adnoc’s ongoing transformation and underscores the company’s commitment to driving long-term, sustainable value for its stakeholders. By unlocking value in its logistics and services business, Adnoc is creating opportunities for investors to participate in the growth of one of the UAE’s leading integrated logistics providers while supporting its ambitious growth plans.