ADNOC sells three per cent stake in logistics unit via offering

Abu Dhabi's ADNOC is selling an around three per cent stake in its logistics and services unit through a bookbuild offering, it said on Thursday, as the United Arab Emirates state oil company resorts to more secondary share sales in its businesses.

ADNOC said in a statement it would offer up to 222 million shares in ADNOC L&S to professional investors in the UAE and institutional investors "elsewhere".

The deal was fully covered by Thursday evening, local time, according to a source familiar with the matter, with indicated demand exceeding the 222 million shares available.

Pricing and allocations are expected on Friday, with settlement early next week.

The deal is expected to increase ADNOC L&S' free float to 22 per cent and "enhance the trading liquidity" of shares in the unit.

Created in 2016, ADNOC L&S exports crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi to more than 100 customers in over 50 countries.

The secondary share sale follows an initial public offering of the business in 2023 that raised $769 million for ADNOC, which currently owns an 81 per cent stake.

Other recent secondary offerings in ADNOC units include in its gas business, which raised $2.84 billion in February in one the biggest share sales in the Middle East in recent years.

ADNOC did not disclose the offer price for ADNOC L&S' shares, which closed 2.3 per cent higher at AED5.43 ($1.48) on Thursday. The stock is up around 1.5 per cent in the last year, according to LSEG data.

First Abu Dhabi Bank, JPMorgan and China International Capital Corporation were among banks appointed as joint global coordinators and joint bookrunners for the offering.

(Reporting by Federico Maccioni and Luke Tyson, Editing by Susan Fenton, Kirsten Donovan)