Abu Dhabi National Oil Company (ADNOC) announced it has successfully completed the pricing of a placement of approximately 222 million shares in ADNOC Logistics & Services (ADNOC L&S) to institutional investors amidst what the company called “exceptional demand”.
This represents approximately 3 percent of ADNOC L&S’ total issued and outstanding share capital, increasing the company’s free float to around 22 percent.
The offering, priced at AED5.25 (US$1.43) per share and at the tightest discount for a secondary sell-down in the region, was oversubscribed almost seven times by institutional investors in the GCC and internationally. The accelerated bookbuild lasted just four hours.
ADNOC continues to see significant growth potential in ADNOC L&S
An increase in free float will provide a pathway to possible inclusion in the MSCI Emerging Market Index, which may take place as early as the next quarterly review, subject to ADNOC L&S meeting all the relevant inclusion criteria.
Khaled Al Zaabi, Group Chief Financial Officer, ADNOC, commented: “Following exceptional demand from both local and international investors, with oversubscription levels of approximately 7x during an accelerated bookbuild of just four hours, we are delighted to announce the successful completion of our US$317 million institutional placement of ADNOC L&S shares.
“This Offering reinforces our commitment to delivering long-term value for shareholders and supports the execution of our broader strategy to achieve index inclusion of our listed companies. As a result of the placement, ADNOC L&S’ free float will increase to nearly 22 per cent, improving its trading liquidity. It will diversify the shareholder base and provide a clear pathway towards MSCI index inclusion.
“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.”
ADNOC continues to see significant growth potential in ADNOC L&S, given its strong strategic and operating momentum. The company’s half-year 2025 financial results saw revenue and earnings growth above market expectations. EBITDA reached US$744 million in H1 2025. It has also upgraded its full-year guidance and announced a 5 per cent increase to the full-year dividend.
ADNOC, as ultimate beneficiary, will retain roughly 78 per cent stake in the company and has agreed to a six-month share sale lock up, restricting it from selling additional shares in ADNOC L&S for the period.
