Abu Dhabi Ports Group began trading for the first time Tuesday on Abu Dhabi’s stock exchange, following a $1.1 billion capital raise from a primary issuance ahead of its listing.
AD Ports Group, which operates ports, logistics and industrial zones in the United Arab Emirates, traded at the equivalent of around 98 cents a share, or 3.60 dirhams. The company said it will use the capital raised from its listing to fund its plans to expand locally and internationally.
For the latest headlines, follow our Google News channel online or via the app.
The company is majority owned by ADQ, one of Abu Dhabi’s sovereign wealth funds. ADQ has a stake of 75.44 percent in AD Ports Group. The exchange shows the company is more than 98 percent owned by Emirati nationals.
The move to list AD Ports Group comes nearly two years after major UAE global port operator DP World announced it was delisting from Dubai’s stock exchange and returning the company to full state-ownership. The move was aimed at helping the Dubai government’s investment company repay more than $5 billion to banks.
Abu Dhabi is where most of the UAE’s oil and gas wealth sits. The income generated by its vast energy reserves has helped transform the 50-year-old nation and the lives of its local population of just over 1 million citizens, who rely heavily on global food imports.
The UAE’s ports are nestled on the western coastline of the Arabian Gulf. The UAE has positioned itself as a key gateway linking East and West, using logistics and ports to diversity its economy and create new revenue streams.
Ahead of the listing, major shareholder ADQ transferred ownership of its 22.32 percent stake in logistics firm Aramex and a 10 percent stake in UAE-based contractor National Marine Dredging Company to AD Ports Group.
The ports company owns and operates 10 ports in the UAE and one in Guinea. It also manages a number of industrial zones locally. It recorded revenue of $760 million in the first nine months of 2021, with earnings of $316 million before taxes and other costs. Global trade volumes have increased since the economic slowdown caused by the coronavirus pandemic in 2020.
“Driven by our leaders’ vision to diversify our economy, we have built a market-leading business,” said AD Ports Group chairman Falah al-Ahbabi in a statement.
“We welcome our new shareholders, and we are confident that we are well-positioned to take the next step on our journey of sustained growth and global expansion.”
Dubai plans to cut carbon emissions 30 pct by 2030: Media office
Dubai to switch upcoming coal-powered plant to natural gas in sustainability push
Fund in Abu Dhabi tracking Saudi shares is a first for Gulf ETFs
Dubai plans to cut carbon emissions 30 pct by 2030: Media officeDubai plans to cut carbon emissions by 30 percent by the end of 2030, the emirate’s government media office said on Sunday on its website.The plan is ... Gulf
Dubai to switch upcoming coal-powered plant to natural gas in sustainability pushA planned $3.4 billion coal-fired power plant in Dubai instead will be converted to use natural gas, the emirate announced, amid the United Arab ... Gulf
Fund in Abu Dhabi tracking Saudi shares is a first for Gulf ETFs“The next obvious market was Saudi Arabia -- it’s the biggest market in the region,” Sherif Salem, the firm’s chief investment officer of public markets said in an interview. Economy