ADNOC rakes in $317m from stake sale in subsidiary

Dubai: ADNOC has completed placement of 222 million shares it holds in ADNOC Logistics & Services with institutional investors.

This represents about 3% of ADNOC L&S's issued and outstanding share capital. With the share sale, it will increase the ADX-listed company’s free float to around 22%.

"The offering received exceptional demand from institutional investors in the GCC and internationally, with oversubscription levels of 7x," said a statement.

On ADX, the ADNOC L&S share gained more than 2% on Thursday (August 28) to Dh5.43.

All of which happened as part of an 'accelerated' bookbuild of around four hours - which is 'among the highest seen in a secondary sell-down in the region'.

The sale was priced at Dh5.25 per share, at the 'tightest discount for a secondary sell-down in the region'.

ADNOC L&S had revenues and income growth 'above market expectations' for the H1-2025 period, with EBITDA at $744 million.

The company upgraded its full-year guidance and announced a 5% increase to the full-year dividend.

ADNOC after the new stake sale has a 6-month share sale lock up.

"As a result of the placement, ADNOC L&S’s free float will increase from 19% to 22%, improving its trading liquidity, further diversifying the company’s shareholder base and providing a clear pathway towards MSCI index inclusion," said Khaled Al Zaabi, Group Chief Financial Officer at ADNOC.

"As majority owner, ADNOC remains fully committed to supporting the company to deliver its ambitious growth plans, with continued focus on unlocking long-term, sustainable value for all shareholders.”

In February, ADNOC raised $2.84 billion from an additional stake sale of 4% in ADNOC Gas, where total oversubscription was 4.4x on an offer priced at Dh3.40 a share. (That's about 43% above the IPO price of Dh2.37.