- Adnoc Logistics & Services, the maritime logistics unit of Abu Dhabi's main energy company, saw a significant 52% surge in its stock price during its highly oversubscribed $769 million initial public offering. This jump in share price ranks as the third-largest globally for IPOs that raised over $500 million this year. Adnoc L&S shares opened at 2.91 dirhams, surpassing the offering price of 2.01 dirhams. This represented a 19% stake in the company sold by Abu Dhabi National Oil Co., valuing Adnoc L&S at $4.05 billion.
- Adnoc's IPO received overwhelming investor demand, with $125 billion in order, surpassing Saudi Aramco's record. The strong interest led Adnoc to increase the IPO size by over a quarter. The surge was expected due to attractive pricing and resulted in unprecedented oversubscription levels. Despite a decrease in overall IPO volumes, Adnoc's performance highlights continued appetite for listings in the Persian Gulf.
Why it matters
Adnoc raised $2.5 billion from its gas business listing, drawing $124 billion in orders. The region's high dividend yields attract investors. Adnoc has been selling stakes in units since 2017 to diversify the economy and reduce reliance on fossil fuels. It listed Borouge and sold shares in its drilling unit and fertilizer company, among others.
