Adnoc’s Lightning IPO

Adnoc’s Lightning IPO

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  • Adnoc Logistics & Services' IPO received strong demand, with all shares subscribed within minutes. Abu Dhabi National Oil plans to sell approximately 1.11 billion shares at a price range of 1.99 to 2.01 dirhams per share, valuing the company at up to $4.05B. The IPO could raise as much as $607M, with demand exceeding the deal size throughout the price range.

  • This IPO marks its second listing this year, following the successful $2.5B IPO of its gas business in March. Adnoc L&S, the unit being listed, plans to distribute a cash dividend of $260M in 2023 and aims to increase it by at least 5% annually. To meet the rising demand from Adnoc's businesses, the company is expanding its fleet and targeting capital expenditure of $4B to $5B in the medium term.

Why it matters

Proceeds from IPOs in the Middle East have experienced a significant 69% decline compared to the same period last year, currently totaling $3.5 billion. The market has been impacted by lower oil prices and concerns over global economic growth. Despite these challenges, the Middle East's IPO market is performing comparatively better than regions like Europe, where IPOs are struggling to gain momentum. 

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