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London - State oil firm Abu Dhabi National Oil Company (ADNOC) has invited banks to pitch for roles in an initial public offering of its marine services and logistics unit, two sources with knowledge of the matter said on Thursday.
Reuters reported last year that ADNOC was weighing a potential float of ADNOC Logistics & Services (ADNOC L&S) in 2022.
Banks are pitching for roles this week on the latest IPO of an ADNOC subsidiary, planned for next year, the sources said.
"Abu Dhabi National Oil Company (ADNOC) is continuously exploring a number of strategic options, including a potential initial public offering (IPO) of a minority stake, of its Logistics and Shipping unit ADNOC L&S. ADNOC will provide further material updates as and when appropriate," ADNOC said in an emailed statement in response to a Reuters query.
The invitation to banks comes amid an IPO boom in the Gulf, with issuers raising more than $15 billion in flotations this year, according to Refinitiv data. The region's IPO proceeds in the first half of 2022 exceeded European flotations, the data showed, even as global markets remained volatile because of Russia's invasion of Ukraine.
ADNOC, which supplies nearly 3% of global oil demand, is seeking to extract value from businesses it owns and divest assets seen as non-core businesses.
Borouge, jointly owned by ADNOC and Austria's Borealis, raised $2 billion in an IPO in late May. Last year the oil giant floated shares of ADNOC Drilling, which raised $1.1 billion, and fertilisers and clean ammonia products maker Fertiglobe, a joint venture with chemical producer OCI, which raised just under $800 million.
ADNOC L&S delivers crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi to its international customers. It was created in 2016 following a merger between Abu Dhabi National Tanker Co, Petroleum Services Co and Abu Dhabi Petroleum Ports Operating Co.
Other oil producers in the Gulf have, like ADNOC, sold stakes in energy assets, capitalising on a rebound in crude prices to attract foreign investors. Some continue to explore fund raising options.
ADNOC began floating units in late 2017, raising $851 million in an IPO of its fuel distribution unit.
Saudi Arabia's oil giant Aramco went public in late 2019 in an IPO later upsized to $29.4 billion, the largest in the world.
The two Gulf oil majors have both also sold stakes in their pipeline infrastructure in lease-leaseback deals worth billions of dollars.
(Reporting by Hadeel Al Sayegh; Writing by Yousef Saba in Dubai; Editing by Susan Fenton)