ADNOC Announces Plan To Offer Up To 222 Million Shares In ADNOC L&S Through Bookbuild Offering

Abu Dhabi National Oil Company (ADNOC) has announced plans to offer up to 222 million ordinary shares in ADNOC L&S, representing about 3% of its share capital. This offering will be conducted through a bookbuild process targeting eligible institutional investors under Rule 144A and Regulation S of the U.S. Securities Act of 1933.

The offering aims to enhance liquidity and trading of ADNOC L&S shares while diversifying its shareholder base. Increasing the free float could lead to inclusion in the MSCI Emerging Market Index, potentially broadening the investor base and increasing recognition of ADNOC L&S as a leader in global energy maritime logistics.

The bookbuilding period for this offering has started and is expected to conclude before market opening on August 29, 2025, unless accelerated. The final number of shares and their price will be determined at the end of this process. Settlement is anticipated around September 3, 2025.

ADNOC L&S's recent performance has been strong, with Q2 2025 results showing a 40% increase in revenue year-on-year and a 31% rise in EBITDA. This growth exceeded market expectations, highlighting the company's strategic diversification and robust business model.

Shares retained by ADNOC that are not part of this offering will be under a six-month lock-up period from the settlement date, with some standard exceptions. This move aligns with ADNOC's strategy to maintain control while enhancing market presence.

The offering is restricted to Professional Investors as defined by the UAE Securities and Commodities Authority within the UAE and institutional investors elsewhere. It is not open to the general public in any jurisdiction.

Market Impact

If ADNOC L&S meets all criteria for MSCI index inclusion during the next quarterly review, it could significantly diversify its investor base further. This inclusion would also strengthen awareness of its unique position in energy maritime logistics globally.

The company has revised its full-year guidance upwards due to strong momentum, reflecting confidence in delivering sustained value for shareholders over time.

First Abu Dhabi Bank PJSC, J.P. Morgan Securities plc, International Securities LLC, BOCI Asia Limited, and China International Capital Corporation Hong Kong Securities Limited are serving as Joint Global Coordinators and Joint Bookrunners for this offering.

With inputs from WAM