Monday, January 30, 2023
spot_img
HomeFinance & EconomyAbu Dhabi Ports Stock Surges After $1.1 Billion Share Sale

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Abu Dhabi Ports Stock Surges After $1.1 Billion Share Sale

Abu Dhabi Ports rose as much as 17% on its trading debut after a 4 billion dirham ($1.1 billion) share sale, underscoring the strong demand for new listings in the Middle East even as deals from the U.S. to Europe struggle.

The port operator climbed to 3.75 dirhams on Tuesday, up from the offer price of 3.20, before paring gains to 3.61 by 1:10 p.m. in Abu Dhabi. The company, controlled by Abu Dhabi sovereign wealth fund ADQ, sold 1.25 billion shares.

The Middle East enjoyed a boom in initial public offerings last year, as rising oil prices and an easing of coronavirus restrictions fueled investor hunger for equities. Bankers are expecting that to continue in 2022, even as spiking volatility causes companies in other markets to postpone deals.

Abu Dhabi, the wealthiest of the United Arab Emirates’ seven sheikhdoms, saw its IPO market rebound to life in 2021 after a four-year lull. It has offered sweeteners that include flexibility on the minimum stake size required for share sales and promises to reduce or forgo listing fees.

In December, the emirate launched a 5 billion dirham-IPO fund to invest in private-sector companies looking to list on the bourse.

Logistics Boom

Many logistics companies, including port operators, have benefited from surging demand for freight and goods during the pandemic, with consumers spending less on travel and services such as restaurants.

The pandemic also threw shipping schedules into chaos, resulting in long lines of vessels trying to enter ports. The supply-chain bottlenecks have rattled global trade and will last until at least the end of this year, chief strategy officer Ross Thompson said in an interview.

AD Ports last year handled a record 45 million tons of general cargo volumes, up 50% from the previous year. “Twenty-twenty for us was a record year, 2021 was a record year, there’s no reason why we don’t see that continuing in the future,” said Thompson.

Read more: S&P Says Abu Dhabi Ports’ Listing to Boost Financial Buffers

The company has recently become more active in capital markets, selling a debut bond of $1 billion in April and signaling it has plans to issue more debt.

AD Ports might decide to issue green bonds or bonds linked to Environmental, Social and Governance aims, said chief financial officer Martin Aarup in an interview. “It’s a key focus for us in terms of being ahead of the curve.” However, the company isn’t in a rush to issue more bonds since it’s raised 4 billion dirhams through the listing, he said.

The firm has a number of expansion projects ongoing at Khalifa Port, where it added a new container terminal in 2018. “We believe that the group is well positioned to accelerate its local and international expansion plans in 2022 and beyond,” Chief Executive Officer Mohamed Juma Al Shamsi said in a statement.

ADQ will remain a majority shareholder in AD Ports with a 75% stake. The wealth fund transferred stakes of 22% in logistics firm Aramex and 10% in UAE-based contractor National Marine Dredging to AD Ports prior to the sale.

Source: Bloomberg

Related Posts

Video

Finance & Economy
Shipping News
Ports

Oaktree looking at block sale of existing shares in Hafnia Limited

OCM Luxembourg Chemical Tankers S.à r.l. which is ultimately controlled by funds managed by Oaktree Capital Management L.P. (the "Seller") has retained Fearnley Securities,...

John Fredriksen Increases Stake in Euronav

Norwegian billionaire John Fredriksen has once again increased his stake in Belgian tanker company Euronav in wake of Frontline’s termination of its combination agreement...

First Citizens Bank Arranges $44.2 Million of Debt Financing for Navios Partners

First Citizens Bank announced that its Maritime Finance group, part of the CIT division, served as sole lead arranger on $44.2 million in debt...

Eagle Bulk Appoints Kate Blankenship to Board of Directors

Eagle Bulk Shipping Inc., one of the world’s largest owner-operators within the midsize drybulk vessel segment, announced that it has appointed A. Kate Blankenship...

Golar LNG: Unwind of majority of TTF hedges of 2023 and 2024 Dutch Title Transfer Facility exposure

Golar LNG Limited (“Golar”) announced that it has unwound the majority of its swap arrangements for its Dutch Title Transfer Facility (“TTF”) linked production...

Cyprus shipping making waves – report

Cyprus shipping, the steady driver of the economy, is sailing for better times, having...

Baltic index hits fresh multi-year lows on capesize dip

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index falls for seventh session on lower capesize demand

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index hits fresh 2-1/2-year low as larger vessel rates slip

The Baltic Exchange’s main sea freight index extended losses to a sixth straight session...

Baltic index down for fifth day on lower vessel rates

The Baltic Exchange’s main sea freight index fell for the fifth straight session on...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...

Nigeria opens ‘game changer’ billion-dollar deep seaport

Nigeria opened a billion-dollar Chinese-built deep seaport in Lagos on Monday, which is expected to ease congestion at the country’s ports and help it...

SC Ports handles nearly 3 million TEUs in record 2022

South Carolina Ports had a record 2022 with the most containers ever handled at the Port of Charleston. SC Ports moved nearly 2.8 million TEUs...

January oil loadings from Russia’s Baltic ports set to jump 50% vs Dec

Urals and KEBCO crude oil loadings from Russia’s Baltic ports of Primorsk and Ust-Luga in January are set to rise by 50% from December...