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ADQ plans to list Abu Dhabi Ports on Abu Dhabi Securities Exchange

Dubai - Proposed listing will accelerate Abu Dhabi Ports’ strategic plan to become a global maritime and logistics leader

ADQ on Tuesday announced its intention to proceed with listing shares of Abu Dhabi Ports Company before the end of the year.

The listing on the Abu Dhabi Securities Exchange (ADX) is expected to comprise a sale of a portion of existing shares to investors in the UAE. However, ADQ will remain a majority shareholder of Abu Dhabi Ports following the listing.

“Today’s announcement marks another important step in Abu Dhabi Ports’ ongoing journey as we consolidate our leading role in the maritime and logistics sectors,” Falah Mohammed Al Ahbabi, Chairman of Abu Dhabi Ports, said in a statement to Khaleej Times.

Through the listing of Abu Dhabi Ports on ADX, investors will gain exposure to the largest, and most diversified and financially resilient ports operator with solid growth potential and investment-grade credit ratings that are underpinned by a robust capital structure.

“We are confident Abu Dhabi Ports is well-positioned to continue progressing on its strategy towards becoming a global trade and commercial hub," said Mohamed Hassan Alsuwaidi, chief executive officer, ADQ.

ADQ, whose assets are estimated at $110 billion by sovereign fund tracker Global SWF in March, ranks as the UAE’s third-biggest sovereign wealth fund.

"With 14 listings already in 2021, ADX is an ideal choice to give investors access to a high quality, high growth potential maritime and logistics leader due to its growing liquidity and resiliency," he added.

Captain Mohamed Juma Al Shamisi, group CEO, Abu Dhabi Ports, said his company is committed to driving innovation and development across the global maritime and logistics industries to support the growth of Abu Dhabi and the UAE.

"Over the past year, we have delivered on our long-term strategy focused on driving global trade through an integrated portfolio of world-class ports, industrial zones and logistics supply chains,” he said.

ADQ, whose assets are estimated at $110 billion by sovereign fund tracker Global SWF in March, ranks as the UAE’s third-biggest sovereign wealth fund.

Daniel Takieddine, senior market analyst at FXPrimus, said ADQ’s plans to list Abu Dhabi Ports on the ADX should be able to attract a big amount of interest as the region is getting more attention from international investors who are eager to participate in new public offerings.

“The operation should also create a new dynamic on the stock market as a whole as seen with the latest IPOs on the Saudi exchange by bringing new capital and exposing an important sector to the market. The operation comes as ADQ tries to spur increased activity in the local stock market,” Takieddine told Khaleej Times.

For the year ended December 31, 2020, Abu Dhabi Ports reported revenues of Dh3.4 billion, a growth of Dh0.7 billion or 24 per cent compared to 2019 despite the Covid-19 impact. Growth was delivered across key revenue streams backed by strong operational performance.

EBITDA of Abu Dhabi Ports grew by 37 per cent to reach Dh1.5 billion in 2020 and EBITDA margins improved from 40.7 per cent in 2019 to 45.2 per cent in 2020. Abu Dhabi Ports’ asset base expanded by Dh3.1 billion, reaching a total of Dh24.8 billion as of December 31, 2020.

The proposed listing is currently expected to occur before the end of 2021, subject to market conditions and obtaining relevant regulatory approvals.

— muzaffarrizvi@khaleejtimes.com