Abu dhabi: Abu Dhabi National Oil Company (ADNOC) today announced that it has successfully completed a placement to institutional investors of approximately 222 million shares in ADNOC Logistics and Services plc (ADNOC LandS), representing around 3% of the Company's issued share capital.
According to Emirates News Agency, this offering underscores ADNOC's sustained focus on enhancing long-term shareholder value and its strategy to achieve MSCI index inclusion for its listed entities. The transaction enhances liquidity in ADNOC LandS's shares by increasing its free float to roughly 22% and broadens the Company's investor base.
The offering is anticipated to facilitate potential MSCI indexation, boosting both international and domestic investor awareness of ADNOC LandS's unique proposition as a leader in global energy maritime logistics. Since its listing on the ADX in June 2023, ADNOC LandS has demonstrated impressive growth, consistently delivering strong financial and operating performance with a total shareholder return (TSR) exceeding 170%.
In the first half of 2025, the Company reported record results, with revenue up 40% year-on-year and EBITDA rising 26% to AED2.7 billion. This follows an EBITDA of AED4.2 billion in 2024, doubling since its IPO, highlighting the value of the Company's strategic diversification and resilient business model.
ADNOC LandS continues to make significant strides in executing its value-accretive growth plan, boasting AED95.5 billion in long-term contracted revenues and forward contracts totaling more than 960 years, ensuring visibility and resilience. Growth investments are progressing as planned, with the Company targeting high 20%'s year-on-year revenue growth and mid-20%'s EBITDA growth for 2025.
The underlying business's strength and confidence are further evidenced by the 17 'Buy' recommendations on the Company's shares from major local and international financial institutions covering ADNOC LandS.
The Company has also upgraded its full-year guidance and reiterated a 5% dividend increase to AED1,053 million for 2025, as initially outlined during ADNOC LandS's listing. ADNOC remains well-positioned to continue delivering sustainable returns for investors as a long-term majority shareholder.
The offering received exceptional demand from institutional investors in the GCC and internationally, with oversubscription levels of approximately 7x during an accelerated bookbuild of around four hours. This is among the highest oversubscription levels seen in a secondary sell-down in the region. The offering was priced at AED5.25 per share, marking the tightest discount for a secondary sell-down in the region.
This transaction marks another milestone in ADNOC's exemplary track record in equity capital market transactions, which have consistently unlocked value, attracted international investment, and expanded Abu Dhabi's role as a rapidly growing global financial center.
Previous placements for ADNOC Gas, ADNOC Drilling, and ADNOC Distribution have led to all three companies receiving MSCI index inclusion and have since seen substantial increases in daily traded volume, foreign ownership, and analyst coverage.
The offering also bolsters the development of the UAE's capital markets, reinforcing its position as a leading and trusted destination for global capital.
Khaled Al Zaabi, Group Chief Financial Officer, ADNOC, commented on the pricing of the offering, stating, "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 AED1.16 billion institutional placement of ADNOC LandS 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."
ADNOC LandS is ADNOC's integrated energy maritime logistics and shipping leader, providing essential services across ADNOC's entire value chain and to over 100 global customers in more than 50 countries.
With one of the most modern and diverse fleets in the region, including over 340 owned vessels and more than 600 chartered annually, ADNOC LandS ensures the reliable, cost-efficient, and sustainable flow of energy to markets worldwide.
The Company plays a crucial role in advancing ADNOC's growth strategy, supporting the UAE's energy transition, and solidifying Abu Dhabi's position as a global hub for shipping and logistics.
As a long-term majority shareholder, ADNOC remains fully committed to ADNOC LandS's continued success and will continue to support the Company's growth ambitions.