ABU DHABI: Abu Dhabi National Hotels (ADNH) is poised to make a significant impact on the financial landscape of the United Arab Emirates with its initial public offering (IPO) for its catering unit.
The offer price has been set between AED0.91 and AED0.96 per share, which translates to a market capitalisation ranging from AED 2.05 billion (approximately $557 million) to AED2.16 billion (approximately $588 million).
The strategic move is indicative of ADNH’s robust positioning within the hospitality sector and its commitment to enhancing shareholder value.
The IPO will involve the issuance of 900 million shares, representing 40% of ADNH Catering’s total issued share capital, with a nominal value of AED 0.10 per share.
The subscription period commenced today, with the closing dates scheduled for October 14, 2024, for UAE retail and eligible employee offerings, and October 15, 2024, for qualified investors. The final offer price will be announced on October 16, 2024, providing further clarity to potential investors.
An intriguing aspect of this offering is the provision allowing up to 10% of the offer shares to be available for existing shareholders of ADNH Group. This initiative not only rewards current investors but also fosters a sense of continuity and loyalty within the shareholder community.
Expanding footprint
Clive Cowley, the Chief Executive Officer of ADNH Catering, highlighted the company’s strategic focus on high-growth sectors such as healthcare and education, alongside its expanding geographical footprint in Abu Dhabi and Dubai.
Furthermore, Cowley expressed optimism regarding the company’s prospects in Saudi Arabia, particularly in the Eastern Region, Jeddah, and Riyadh, where operational expansions are already underway.
To facilitate this IPO, a consortium of financial institutions has been appointed to ensure its success. Citigroup Global Markets Limited and First Abu Dhabi Bank PJSC serve as Joint Global Coordinators and Joint Bookrunners, while Emirates NBD Capital PSC and Abu Dhabi Commercial Bank PJSC are also involved as joint bookrunners.
First Abu Dhabi Bank PJSC will act as the Lead Receiving Bank, with several other banks designated as receiving banks.
