Abu Dhabi: Abu Dhabi National Oil Company (ADNOC) will increase the number of ordinary shares on offer at the ADNOC Logistics & Services initial public offering, the energy conglomerate said on Monday.
The company will now offer 1,405,714,765 ordinary shares, equivalent to 19 per cent of it total issued share capital, up from 1,109,774,817 ordinary shares or 15 per cent of total issued share capital.
The offer size was increased following “significant investor demand across all tranches and to reflect ADNOC’s commitment to a supportive trading environment for the company’s stock post-admission”, the company said.
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Last week, the offering received enough orders to cover all shares on offer within minutes of the IPO opening.
Assuming all the shares on offer are sold, the size of the offering will be approximately $762 million to $769 million (Dh2.80 billion to Dh2.83 billion). The final offer price is expected to be announced on Thursday, May 25.
Khaled Al Zaabi, Group CFO of ADNOC, said: “We are delighted to announce that we will be increasing the offer size for the ADNOC Logistics & Services IPO, which is set to be the second-largest market debut so far this year in the Middle East region, marking another remarkable accomplishment for ADNOC in its ongoing value creation program.
“We have witnessed exceptional demand across all tranches, with significant interest across the local, regional and global investment community in this unique opportunity, reflecting ADNOC L&S’ strong growth prospects as a critical enabler of Abu Dhabi and the UAE’s supply of energy to the world while driving the decarbonization of the UAE maritime sector.”
Accordingly, the size of the first tranche of the offering will be increased from 9 per cent to 12 per cent (representing 168,685,772 ordinary shares). The third tranche (reserved for employees of ADNOC group companies residing in the UAE and UAE national retirees of ADNOC group companies residing in the UAE) represents 3 per cent of the offering (equivalent to 42,171,443 ordinary shares), with the remaining 85 per cent (equivalent to 1,194,857,550 ordinary shares) reserved for investors in the professional investor offering.
The subscription period for IPO is unchanged and will continue until Tuesday, May 23 for individuals and other investors in the UAE, employees of ADNOC group companies residing in the UAE; and UAE national retirees of ADNOC group companies residing in the UAE.
For professional and other investors in other countries, the subscription ends on Wednesday, May 24.
The final offer price is expected to be announced on May 25, while listing on ADX is expected on June 1.