Abu Dhabi May 16 2023: The initial public offering (IPO) of Abu Dhabi National Oil (Adnoc) Logistics & Services got enough orders to cover all shares within minutes, showing continued strong demand for listings in the Middle East.
Adnoc is selling about 1.11 billion shares in its maritime logistics unit at 1.99 dirhams (S$0.72) to 2.01 dirhams each, valuing the company at as much as US$4.05 billion, according to a statement on Tuesday (May 15).
Order books for the IPO, which could raise as much as US$607 million at the top end, were covered throughout the range and indicated demand exceeded deal size, according to a message to investors seen by Bloomberg News.
Al Seer Marine Supplies & Equipment, National Marine Dredging, Alpha Oryx – ultimately owned by Abu Dhabi wealth fund ADQ – and Abu Dhabi Pension Fund have committed to become cornerstone investors and subscribed for about US$180 million combined.
The deal is the second listing of a unit by state-owned Adnoc this year, after it raised US$2.5 billion in the IPO of its gas business in March. It’s also set to be the second-biggest IPO in the Middle East so far this year.
Proceeds from initial public offerings in the Middle East have dropped 69 per cent from the same period a year ago and stand at US$3.5 billion, according to data compiled by Bloomberg. Lower oil prices and concerns about slower economic growth globally have weighed on the market, and the MSCI GCC Countries Index has fallen almost 17 per cent in the past year.
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