ADNOC raises $317 million through secondary share sale in logistics arm

The placement involved around 222 million shares in ADNOC Logistics & Services (ADNOC L&S), priced at 5.25 dirhams ($1.43) per share. This figure represents a 3.3% discount compared to Thursday’s closing price of 5.43 dirhams.

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Women's Tabloid News Desk

Abu Dhabi National Oil Company (ADNOC) has raised $317 million by selling a 3% stake in its logistics and services subsidiary via an institutional placement. The transaction was completed through a bookbuild process, the company announced on Thursday.

The placement involved around 222 million shares in ADNOC Logistics & Services (ADNOC L&S), priced at 5.25 dirhams ($1.43) per share. This figure represents a 3.3% discount compared to Thursday’s closing price of 5.43 dirhams.

According to ADNOC, the sale generated “exceptional demand” from both Gulf and international institutional investors, with subscriptions reaching nearly seven times the offered amount during a four-hour accelerated bookbuild. The company noted that this marks one of the region’s most oversubscribed secondary transactions.

Following the deal, ADNOC L&S’s free float will increase to 22%, which the company said will enhance the liquidity of its shares.

ADNOC L&S, established in 2016, transports crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi to over 100 customers across more than 50 countries. ADNOC retains an 81% stake in the subsidiary, after initially raising $769 million through an IPO of the business in 2023.

Other secondary offerings from ADNOC have included its gas division, which secured $2.84 billion in February, ranking among the largest share sales in the Middle East in recent years.

First Abu Dhabi Bank, JPMorgan and China International Capital Corporation acted as joint global coordinators and joint bookrunners for the latest transaction.

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