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ADNOC announced the completion of the price building process and the initial public offering of ADNOC Supply and Services plc, and achieved the offering of a minority stake representing 19% of the company’s issued shares, after increasing it from 15% to meet the large demand from investors, at a final price of 2.01 dirhams per ordinary share. Total proceeds upon settlement are about 2.83 billion dirhams ($769 million) for ADNOC.
The offering of ADNOC Logistics and Services witnessed an exceptional demand, which makes it the highest request for public subscription in the world this year, as it witnessed a great demand from individuals and professional investors in the UAE, amounting in total to more than 460 billion dirhams ($ 125 billion), exceeding the total value The target was 163 times, achieving the highest level of exceeding the target value ever to build a price for an IPO in the UAE.
Individual subscriptions amounted to 113.77 billion dirhams, 269 times the offered subscription, compared to 346.3 billion dirhams, the financial subscription.
On this occasion, Khaled Al Zaabi, Chief Financial Officer of the ADNOC Group, said: “We are pleased with the unique demand witnessed by ADNOC’s supply and services offering from the segment of individual investors in the UAE, as well as from local and international investment institutions. The IPO saw the highest bid for an IPO globally so far this year and achieved the highest ever value-exceeding target for an IPO price build-up in the UAE. This is the sixth historic initial public offering that ADNOC has implemented with a minority stake in the shares of one of its subsidiaries within five years, and the offering represents a new achievement within ADNOC’s ongoing program to create and enhance value, as it confirms the role of ADNOC Logistics and Services in providing opportunities A rewarding investment supported by prospects for strong and long-term growth and gradual dividends. While it continues its pivotal role in attracting global capital, ADNOC welcomes the base of new investors and looks forward to their participation in the growth and development of the company as it continues its efforts to achieve sustainable growth for the UAE, Abu Dhabi and its shareholders.
minority share
ADNOC Logistics and Services is the sixth company in which ADNOC has offered a minority stake in the Abu Dhabi Stock Exchange over the past five years, and it comes after the successful IPOs of ADNOC Distribution, ADNOC Drilling, Fertiglobe and Borouge. And ADNOC Gas, which reinforces ADNOC’s pivotal role as a major catalyst for the diversification and growth of financial markets in the UAE and Abu Dhabi, and establishes the country’s position as a preferred destination for global capital.
The initial public offerings that ADNOC has carried out collectively so far have raised 29.38 billion dirhams ($8 billion), achieving a total demand of more than 1.41 trillion dirhams ($385 billion), which supports ADNOC’s ambitious growth strategy and establishes the UAE’s position as a preferred destination for global investments.
ADNOC Logistics and Services has a track record of success in achieving growth at the local and international levels, operational excellence and effective cost control, which enabled it to achieve significant profits and strong financial results. According to the unaudited financial results, which reflect the acquisition of “Zakher Marine International” in 2022, the company’s revenues amounted to 8.4 billion dirhams ($ 2.3 billion), while adjusted profits before interest, taxes, depreciation, and debt amortization amounted to 2.2 billion dirhams ($ 599.3 million). ) for the year ending on December 31, 2022, and the company’s revenues increased at a compound annual growth rate exceeding 20% during the years 2017-2022.
Business expansion
ADNOC Logistics and Services is implementing a strategy aimed at expanding its business based on a medium-term program to increase capital expenditures amounting to 18.36 billion dirhams ($5 billion), which provides investors with attractive and important growth opportunities.
ADNOC Logistics and Services aims to pay attractive dividends of 716 million dirhams ($195 million) for the second quarter and second half of 2023 (equivalent to an annual dividend of $260 million). The company then expects to increase its dividend by 5% annually over the medium term.
It is expected that the shares of “ADNOC Logistics and Services” will be listed on the Abu Dhabi Stock Exchange on June 1, 2023. Upon listing, “ADNOC” will continue to own a majority stake in “ADNOC Logistics and Services” amounting to 81% in the company.
