- ADNOC L&S increased its free float to approximately 22% with a sale of c.222 million shares.
- The offering was oversubscribed by 7x, raising AED 8.1 billion.
- ADNOC L&S reported a 40% revenue increase and 26% EBITDA growth in H1 2025.
- The company targets high 20% revenue growth and mid-20% EBITDA growth for 2025.
Share Sale and Market Impact
ADNOC completed a sale of approximately 222 million shares in ADNOC Logistics & Services (ADNOC L&S), increasing its free float to around 22%. This move aims to enhance trading liquidity and position the company for potential MSCI index inclusion.
Investor Demand and Financial Performance
The offering attracted strong investor demand, with an oversubscription level of 7x, raising AED 8.1 billion. ADNOC L&S has demonstrated robust financial performance, reporting a 40% increase in revenue and a 26% growth in EBITDA for the first half of 2025.
Growth Strategy and Analyst Support
ADNOC L&S continues to execute its value-accretive growth plan, targeting high 20% revenue growth and mid-20% EBITDA growth for 2025. The company benefits from AED 95.5 billion in long-term contracted revenues and forward contracts totaling over 960 years. All 17 major financial institutions covering ADNOC L&S have issued "Buy" recommendations.
Market Position and Future Outlook
The successful share placement is part of ADNOC's broader strategy to drive long-term shareholder value and enhance its subsidiaries' market positions. Previous placements for ADNOC Gas, ADNOC Drilling, and ADNOC Distribution have led to MSCI index inclusion and significant increases in trading volumes and foreign ownership.
