ADNOC's Shipping Unit Gears Up For IPO, Hires Citigroup, JPMorgan: Report

Abu Dhabi National Oil Company (ADNOC) has reportedly hired First Abu Dhabi Bank PJSC, Citigroup Inc. and JPMorgan Chase & Co. to prepare for the initial public offering (IPO) of its shipping unit named Adnoc Logistics & Services.

People familiar with the matter said the IPO could come as soon as the first half of next year, Bloomberg reported.

The sources, who wished to remain anonymous, further noted that Moelis & Co. has been tapped as a financial adviser, and ADNOC may mandate more banks for the listing.

Even as negotiations are progressing steadily, no decisions have been taken regarding the timeframe.

Other details, including the valuation and size of the sale, were not available.

The decision to list its shipping unit comes at a time when the firm has already raised raised billions of dollars by listing its fertilizer and drilling units, and a plastics venture called Borouge.

IPOs in the Middle East have been booming this year, as most of the governments in the region eye selling stakes in assets to draw in international investors, as a part of their strategic plan to diversify away from an oil-dependent economy.

Latest estimates suggest that IPOs in the Middle East have already raised $16.6 billion this year, with most of the listings coming from Saudi Arabia.

Meanwhile, another Bloomberg report noted ADNOC was selling its waste management operations unit in Ruwais to a consortium comprising Veolia Environnement, Abu Dhabi's ADQ and Saudi Arabia's Vision Invest for less than $500 million.

Standard Chartered Plc is apparently advising Adnoc on the deal, unidentified sources said.

The two waste management plants in Ruwais are currently owned by Adnoc Refining, a joint venture between Adnoc, Italy's Eni SpA and Austria's OMV AG.

ADNOC pumps almost all the oil and natural gas in the UAE, and the company is aiming to produce 5 million barrels per day (bpd) by 2025.