ADNOC L&S sets IPO price range, seeks to raise $607m

ADNOC L&S sets IPO price range, seeks to raise $607m

ADNOC L&S, ADNOC Group’s logistics unit, has started taking investor orders for its initial public offering (IPO) as the maritime logistics firm is set to raise as much as $607m (Dhs2.23bn). ADNOC is offering 1.11 billion shares, equivalent to 15 per cent of the total issued share capital of its logistics business, and the indicative share price of Dhs1.99 to Dhs2.01 apiece implies a market valuation of around Dhs14.9bn. The maritime logistics firm is offering the shares in two tranches — institutional investors and retail investors— between May 16 and May 24, with an expected trading debut on the Abu Dhabi Securities Exchange on June 1, 2023. The company expects the final offer price to be announced on May 26, after the book-building process. ADNOC L&S’s IPO drew in four cornerstone investors including Al Seer Marine Supplies & Equipment Company, National Marine Dredging Company, Alpha Oryx and Abu Dhabi Pension Fund – which agreed to subscribe for shares worth a combined $180m. The Abu Dhabi-based firm plans to pay an annualised 2023 cash dividend of $260m and expects to increase this by at least 5 per cent annually. The company, which has been expanding its fleet to cope with increased