Abu Dhabi National Oil Co (ADNOC) is selling a 15% stake in its logistics and shipping unit in an IPO, its second business to be hived off this year following the listing of ADNOC Gas.

The state-owned oil company will sell 1,109,774,817 shares representing 15% of ADNOC L&S’ total issued share capital, it said in a statement on Wednesday.

Captain Abdulkareem Al Masabi, Chief Executive Officer of ADNOC L&S, said “Our planned IPO offers an exciting opportunity to accelerate our growth, supporting ADNOC Group with its ambitious growth strategy, while further expanding the services provided to our customers and exploring new geographical areas and business verticals.”

ADNOC L&S intends to pay a fixed cash dividend amount of $195 million for the second quarter and the second half of the year 2023.

First Abu Dhabi Bank PJSC, Abu Dhabi Commercial Bank PJSC, EFG Hermes UAE LLC and HSBC Bank Middle East Ltd. are joint lead managers for the IPO.

Subscription to the IPO is set to begin on May 16 when the company will announce the price range with final pricing set for May 25. Shares in ADNOC Logistics are expected to begin trading June 1, according to the statement.

(Reporting by Brinda Darasha; editing by Seban Scaria)

(brinda.darasha@lseg.com)