Abu Dhabi's AD Ports eyes trade corridors, acquisitions (updated)

CTF Services

08/02/2022 11:28

(Adds comments from interview with executives)
    By Saeed Azhar and Alexander Cornwell
    DUBAI, Feb 8 (Reuters) - Abu Dhabi's AD Ports Group
 ADPORTS.AD  plans to develop extensive trade corridors
connecting the United Arab Emirates, with the Middle East, the
subcontinent, Africa and elsewhere, executives said on Tuesday,
following its share listing.
   AD Ports Group, controlled by state investor ADQ, made its
debut on the Abu Dhabi bourse on Tuesday after it had raised
proceeds of 4 billion dirhams from the primary issue.
 urn:newsml:reuters.com:*:nL8N2UI2KZ.
    Its stock opened at 3.5 dirhams ($0.9530) a share and
briefly hit 3.74 dirhams before closing at 3.59 dirhams on
Tuesday, according to Refinitiv data.
    AD Ports Group operates the deepwater Khalifa Port in the
Abu Dhabi emirate, along with other ports and logistics parks
there, and the Indian Ocean Fujairah port. It also operates a
facility in Guinea.
    "We have a very, very strong balance sheet. We have an
ambition to grow," Chief Financial Officer Martin Aarup said in
an interview, adding though that the group was not in a rush.
    "We want to make good deals. We have a strong pipeline and
we are constantly screening (for targets)."
    The group was interested in investing in ports, logistics,
maritime and digital, Aarup said.
    With the equity injection, AD Ports had a strong balance
sheet and low leverage, he said. The company raised $1 billion
in 10-year bonds last year and had a revolving credit facility
of around $600 million.
    "As part of growth and our growth strategy, we will have to
raise additional funding, also on the debt side," Aarup said.
    "When we issued our inaugural bond last year we did it as a
program and therefore also indicating that we would come back to
the market. Timing of which will depend on when growth
opportunities will materialise." 
    AD Ports said its ports business accounted for about 30% of
annual revenues while industrial and logistics parks accounted
for around 33%. It has an expected compound growth rate of
around 13%, it said.
    Abu Dhabi conglomerate IHC  IHC.AD  through its subsidiary 
Al Seer Marine, took a stake of 7.4% in AD Ports Group, it said
the day before the listing. urn:newsml:reuters.com:*:nL4N2UI32N 

($1 = 3.6726 UAE dirham)

 (Reporting by Hadeel Al Sayegh, Saeed Azhar, Alexander
Cornwell; Editing by Clarence Fernandez and Emelia
Sithole-Matarise)
 ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))