EFG Hermes, a leading investment bank franchise in Frontier and Emerging Markets (FEM), announced that its investment banking division successfully completed advisory on the $769 million initial public offering (IPO) of Adnoc Logistics & Services (Adnoc L&S) — on the Abu Dhabi Securities Exchange (ADX).
EFG Hermes acted as joint bookrunner on the transaction.
The listing saw Adnoc L&S offer a total of 19 per cent of its share capital, equivalent to 1,405,714,765 shares, at a nominal value of AED 2.01/share, implying a market capitalisation of $4.05 billion.
The offering generated the largest investor demand for an IPO this year, with demand raised hitting $125 million, implying an oversubscription of 163x — a record-high oversubscription level for a UAE bookbuild IPO. The company began trading today under the ticker AdnocLS.
Mohamed Fahmi, EFG Hermes’ Co-Head of Investment Banking, commented, “We are delighted to be building on our longstanding partnership with Adnoc and to be advising on the IPO of its maritime logistics arm, Adnoc L&S, which marks Adnoc’s second IPO and the second-largest listing in the Middle East so far this year. Investor appetite remains strong for GCC listings, with the region’s markets raising over $ 3.5 billion in proceeds through a series of IPOs in the first quarter of 2023 — of which 91 per cent were generated by the UAE.”
He added, “EFG Hermes was successful in advising on three of the GCC’s most prominent listings this year, having advised on Adnoc Gas Plc’s IPO on the ADX, Abraj Energy Services’ IPO on the Muscat Stock Exchange (MSX), and Al Ansari Financial Services PJSC’s IPO on the Dubai Financial Market (DFM), underscoring our unrivaled ability to continue tapping into the region’s robust pipeline of state-owned and private company offerings that unlock compelling prospects for global and regional investors.”
This listing marks the Firm’s fourth IPO this year and is the latest of several back-to-back transactions EFG Hermes has advised on in the GCC region.
In 2022, the division advised on the first dual listing between the ADX and Saudi Exchange in a deal worth $1.8 billion for Americana Restaurants International, as well as Taaleem’s $204 million IPO on the DFM.
It also advised on Salik’s $1.0 billion listing on the DFM, the $ 2.0 billion listing of Borouge on the ADX, and Riyadh Cables’ $ 400 million IPO on the Saudi Exchange.
Additionally, during the year, the division advised on Ali Alghanim and Sons Automotive Company’s $ 323 million private placement ahead of its IPO on Boursa Kuwait. –TradeArabia News Service