Adnoc L&S secures MSCI emerging markets index spot

07/11/2025 02:04 AST

Abu Dhabi-based Adnoc Logistics & Services (Adnoc L&S) is set to join the MSCI Emerging Markets Index on November 25, marking a significant milestone in its journey as a publicly listed company. The inclusion is expected to attract over $200 million in passive capital inflows, boosting liquidity and visibility for the energy maritime logistics firm.

The announcement follows Adnoc's successful secondary offering in August, which raised $317 million and increased Adnoc L&S's free float to approximately 22 per cent. The offering was seven times oversubscribed, priced at Dh5.25 per share - representing the tightest discount for a regional secondary sell-down at just 3.33 per cent. Since its IPO in June 2023, Adnoc L&S has delivered a total shareholder return of nearly 200 per cent, with its share price climbing approximately 178 per cent.

As of early November 2025, Adnoc L&S shares are trading around Dh5.64, slightly off their 52-week high of Dh6.22. The company's current market capitalization stands at approximately Dh43.9 billion ($11.56 billion), positioning it among the UAE's most valuable transport and logistics firms.

The MSCI inclusion places Adnoc L&S alongside other Adnoc Group entities already in the index - Adnoc Distribution, Adnoc Drilling, and Adnoc Gas - further cementing the conglomerate's growing influence in global capital markets.

Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, hailed the inclusion as a "strong endorsement" of the company's transformation into a global logistics champion. "This milestone reflects growing investor confidence, enhances access to international capital, and supports our strategy to scale operations, unlock diversified revenue streams, and deliver superior, long-term shareholder returns," he said.

Adnoc L&S's fundamentals support this optimism. The company has over $26 billion in long-term contracted revenue and expects more than $10 billion in additional revenue from 23 newbuild vessels under construction, with deliveries scheduled through 2028. Analysts remain bullish, with all 18 covering the stock maintaining Buy ratings.

Dividend guidance for 2025 has been set at $325 million, nearly 20 per cent higher than 2024, with quarterly payouts beginning in Q3 2025. The company is targeting cumulative dividends of $2.2 billion by 2030, reinforcing its appeal to income-focused investors.

The broader Abu Dhabi Securities Exchange (ADX) has also had a strong year. The ADX General Index is up approximately 15 per cent year-to-date, reflecting investor confidence in the UAE's economic resilience and capital market reforms. Adnoc L&S's performance has outpaced the index, underscoring its role as a standout growth story in the region.

The company's strategic acquisitions, including an 80 per cent stake in global ship owner Navig8, have expanded its global footprint and diversified its revenue base. Adnoc L&S now serves over 100 customers in more than 50 countries through its integrated logistics, shipping, and services divisions.

With its MSCI inclusion, Adnoc L&S is poised to benefit from increased institutional interest and passive fund flows, further solidifying its position as a key player in the global energy logistics sector.

Khaleej Times