EFG Hermes Concludes Advisory on USD 769 Million IPO of ADNOC

The listing generated the largest investor demand for an IPO this year, raising over USD 125 billion to imply an oversubscription of 163x

EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced today that its investment banking division successfully completed advisory on the USD 769 million initial public offering (IPO) of ADNOC Logistics & Services Plc (ADNOC L&S) — the UAE’s leading integrated energy player Abu Dhabi National Oil Company’s (ADNOC) maritime logistics unit — on the Abu Dhabi Securities Exchange (ADX). EFG Hermes acted as joint bookrunner on the transaction.

The listing saw ADNOC L&S offer a total of 19% of its share capital, equivalent to 1,405,714,765 shares, at a nominal value of AED 2.01/share, implying a market capitalization of USD 4.05 billion.

The offering generated the largest investor demand for an IPO this year, with demand raised hitting USD 125 billion, implying an oversubscription of 163x — a record-high oversubscription level for a UAE bookbuild IPO. The company began trading today under the ticker ADNOCLS.

Mohamed Fahmi, EFG Hermes’ Co-Head of Investment Banking, commented, “We are delighted to be building on our longstanding partnership with ADNOC and to be advising on the IPO of its maritime logistics arm, ADNOC L&S, which marks ADNOC’s second IPO and the second-largest listing in the Middle East so far this year.

Investor appetite remains strong for GCC listings, with the region’s markets raising over USD 3.5 billion in proceeds through a series of IPOs in the first quarter of 2023 — of which 91% were generated by the UAE. EFG Hermes was successful in advising on three of the GCC’s most prominent listings this year, having advised on ADNOC Gas Plc’s IPO on the ADX, Abraj Energy Services’ IPO on the Muscat Stock Exchange (MSX), and Al Ansari Financial Services PJSC’s IPO on the Dubai Financial Market (DFM), underscoring our unrivaled ability to continue tapping into the region’s robust pipeline of state-owned and private company offerings that unlock compelling prospects for global and regional investors.”

ADNOC L&S is a global energy maritime logistics leader and the dedicated and vital logistics arm for ADNOC, providing critical and highly specialized services across ADNOC’s entire value chain. It is one of the largest end-to-end, fully integrated energy logistics service providers for the energy sector, offering critical services through three key business units: Integrated Logistics, Shipping, and Marine Services to ADNOC’s companies and over 100 global clients in more than 50 countries. The company currently operates five logistics bases and warehouses in Mussafah, Ruwais, Riash, and Fujairah.

The shipping business unit operates one of the largest diversified shipping fleets in the GCC region, comprising more than 500 modern and technologically advanced vessels. ADNOC L&S’s business strategy moving forward is underpinned by ADNOC’s global growth strategy, with plans to accelerate its targets relating to production and processing capacity growth, international expansion, and low-carbon solutions.

This listing marks the Firm’s fourth IPO this year and is the latest of several back-to-back transactions EFG Hermes has advised on in the GCC region. In 2022, the division advised on the first dual listing between the ADX and Saudi Exchange in a deal worth USD 1.8 billion for Americana Restaurants International, as well as Taaleem’s USD 204 million IPO on the DFM. It also advised on Salik’s USD 1.0 billion listing on the DFM, the USD 2.0 billion listing of Borouge plc on the ADX, and Riyadh Cables’ USD 400 million IPO on the Saudi Exchange. Additionally, during the year, the division advised on Ali Alghanim and Sons Automotive Company’s USD 323 million private placement ahead of its IPO on Boursa Kuwait.