Ambitious Abu Dhabi shipowner Al Seer Marine has revealed it is now “the cornerstone investor” in giant compatriot shipping company Adnoc Logistics & Services (Adnoc L&S).
The Adnoc subsidiary listed on 1 June after an initial public offering (IPO) on the Abu Dhabi Securities Exchange, raising more than $607m.
The price range was set between AED 1.99 and AED 2.01 per share, implying an equity value of $4.01bn to $4.05bn.
Abu Dhabi-listed Al Seer first signalled it was buying AED 257m of the stock, but then added another AED 110m, making AED 367.25m ($97m) in total.
The stock is now trading at AED 3, meaning a gain already for the new investor.
Adnoc L&S’s market cap stood at AED 3.33bn on Thursday.
There are 1.11bn shares in circulation, but Al Seer did not specify its stake.
Adnoc had said it was offering a 15% slice, or 1.11m shares.
Tanker and gas carrier owner Al Seer is a subsidiary of Abu Dhabi's International Holding Company (IHC).
The company said the move came as part of the company’s strategy to diversify its investment portfolio, as it continues to be a key and strategic contributor to the UAE’s economy and diversification efforts.
“Al Seer Marine is committed to driving continuous growth for its stakeholders through investments in market leaders that enable the company to deliver superior value to its shareholders,” it added.
Confident in new investment
Chief executive Guy Neivens said: “Al Seer Marine is building on its highly diversified investment portfolio, and with Adnoc has an excellent and longstanding track record and network within the global energy maritime logistics sector. We are confident this cornerstone investment will reflect positively on our growth strategy.”
TradeWinds had earlier reported that Al Seer Marine was part of a group including National Marine Dredging Co, Alpha Oryx and Abu Dhabi Pension Fund that had committed to investing $180m in the IPO.
Adnoc L&S was created in 2016 following a merger between Abu Dhabi National Tanker Co, Petroleum Services Co and Abu Dhabi Petroleum Ports Operating Co.
The company operates a fleet of nearly 150 vessels including LNG carriers, VLGCs, VLCCs, LR1 and LR2 tankers, sulphur carriers, dry bulk vessels and feeder ships, along with separate offshore and port fleets.
In March, Al Seer finalised a deal to add two more MR tankers to its newbuilding slate in South Korea.
The extra vessels were ordered at a price of $42.5m each at K Shipbuilding.
An original order in November 2022 saw four 50,000-dwt clean vessels contracted at a reported cost of $43.75m each.
Gas carrier orders
Since these tanker orders, Al Seer has also been adding to its gas carrier portfolio.
The company said in February that ABGC DMCC — its joint venture with trader BGN International — ordered a vessel worth AED 331m at Kawasaki Heavy Industries in Japan.
The 86,700-cbm VLGC will be powered by LPG and carry both LPG and ammonia.
That deal followed an order for the joint venture of two more VLGCs at South Korea’s Hyundai Samho Heavy Industries.
The shipbuilder said this contract was worth KRW 255.4bn ($197m).
ABGC DMCC previously ordered two 86,000-cbm vessels for $81m apiece in 2021.
Al Seer said it controls 15 ships worth AED 2.75bn, including three VLCCs.
