2023-05-25 12:03:42
The total demand for the initial offering of Emirati “ADNOC Logistics and Services” shares by investors has reached an all-time high, becoming the largest demand for an initial public offering in the world this year.
The offering of the subsidiary of the ADNOC Group also exceeded the target value by about 163 times, which makes it the highest level of exceeding the target value ever to build a price for a public offering in the UAE.
And ADNOC Logistics and Services announced, in an official statement on Thursday, that the value of investor requests has increased to 460 billion dirhams ($125 billion) since the beginning of the offering.
The company had said earlier that it would increase the size of the offering from 15 percent to 19 percent to meet the large demand from investors, after it had raised about 2.83 billion dirhams ($769 million) so far, or the equivalent of 2.01 dirhams per ordinary share.
“This historic IPO is the sixth successful company (ADNOC) to bring to the market within five years, and represents the next notable achievement in our ongoing value creation programme,” ADNOC Group Chief Financial Officer Khaled Al Zaabi said in the statement.
ADNOC Supply and Services’ strategy aims to expand its business with the help of a medium-term program to increase capital expenditures, amounting to 18.36 billion dirhams ($5 billion), which provides investors with attractive growth opportunities, according to the statement.
The offering and listing acceptance process is scheduled to end on Thursday the first of June, subject to favorable market conditions and obtaining relevant regulatory approvals, provided that ADNOC will remain with the majority stake of 81 percent in the company.
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