- Abu Dhabi National Oil, has announced plans to sell a 15% stake in its maritime logistics unit through an initial public offering. This marks the second listing of one of its businesses this year. The company is set to offer approximately 1.11 billion shares in Adnoc Logistics & Services, according to a statement released on Wednesday.
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After raising $2.5 billion through its gas business' IPO, Adnoc is now selling stakes in other portfolio businesses such as its drilling unit, chemicals firm Borouge, and fertilizer company Fertiglobe. Adnoc L&S, which has been bolstering its fleet to meet rising demand from its parent company's ventures, is looking to spend $4 billion to $5 billion on capital expenditures in the near future. The company plans to offer a yearly 2023 cash dividend of $260 million, which it expects to grow by a minimum of 5% each year.
Why it matters
According to Adnoc Group, its companies made up almost 75% of total sales in the year ended December 31, 2022. Recently, they inked a five-year deal with Adnoc Offshore to offer integrated logistics services, including port services and warehouse operations. Bloomberg data reveals that the Middle East has raised around $3.5 billion through listings in 2023, mainly in Abu Dhabi. However, this is a significant decrease from the $11.4 billion raised by the same period last year.
