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ADNOC Raises $769 Mln from Logistics & Services IPO

ADNOC Raises $769 Mln from Logistics & Services IPO
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ADNOC Raises $769 Mln from Logistics & Services IPO

ADNOC Raises $769 Mln from Logistics & Services IPO

Abu Dhabi National Oil Co. (ADNOC) achieved revenues worth 2.83 billion dirhams ($769 million) for launching an IPO of a minority stake that represents 19 percent in the Logistics & Services unit.

The share was increased from 15 percent to 19 percent at 2.01 dirhams each to meet the huge demand from investors.

The IPO saw exceptional demand and the book-building process generated orders of 460 billion dirhams (over $125 billion), implying an oversubscription level of 163 times, the highest-ever oversubscription level for a UAE bookbuild IPO.

Group Chief Financial Officer of ADNOC Khaled Al Zaabi said, “We are delighted with the unparalleled demand for ADNOC L&S shares from UAE retail investors as well as the local, regional, and global investor community.”

“This offering saw the largest demand globally for an IPO this year to date and achieved the highest-ever oversubscription for a UAE bookbuild IPO,” he added.

As the sixth company that ADNOC has listed on ADX in the past five years, ADNOC L&S follows the landmark IPOs of ADNOC Distribution, ADNOC Drilling, Fertiglobe, Borouge, and ADNOC Gas.

ADNOC IPOs to date have raised 29.38 billion dirhams (more than $8 billion), with total demand exceeding 1.41 trillion dirhams ($385 billion), supporting ADNOC’s ambitious growth strategy.

The company’s revenue and adjusted EBITDA for the year ended December 31, 2022 was 8.4 billion dirhams ($2.3 billion) and 2.2 billion dirhams ($599.3 million), respectively, with revenue having increased at a compound annual growth rate of more than 20 percent from 2017 to 2022.

ADNOC L&S is undergoing a major strategic expansion drive, underpinned by an up to 18.36 billion dirhams ($5 billion) medium-term capital expenditure program, providing investors with an exciting growth opportunity.

ADNOC L&S intends to pay a fixed dividend amount of 716 million dirhams ($195 million) for the second quarter and the second half of 2023 (equivalent to annualized dividends of $260m).

Thereafter, the company expects to increase the annual dividend per share by at least 5 percent per annum.

The expected date of listing on ADX is 1st June 2023.

ADNOC has offered six IPOs over the past five years. (Reuters)

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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.