Abu Dhabi National Oil Company (ADNOC) is considering a potential initial public offering (IPO) of ADNOC Logistics & Services (ADNOC L&S) in 2020, Reuters reported, citing sources familiar with the matter. ADNOC and ADNOC L&S have yet to comment on the report, but the sources said an IPO could be done after testing investor appetite and market conditions.
ADNOC, along with some of its Gulf peers, is seeking to extract value from its businesses and divest non-core assets, capitalising on a rally in crude prices. In September, ADNOC raised more than $1.1 billion from floating an 11% stake in ADNOC Drilling. In October, ADNOC and chemicals firm OCI publicly sold stakes in its fertiliser business Fertiglobe, which raised $795 million.
ADNOC L&S ships crude oil, refined products, LNG, and dry bulk commodities from Abu Dhabi to its overseas buyers. It was established in 2016 from the merger of Abu Dhabi National Tanker Co, Petroleum Services Co, and Abu Dhabi Petroleum Ports Operating Co. The unit operates a fleet of more than 240 owned and chartered vessels, including tankers and very large crude carriers (VLCCs).
