ABU DHABI: Abu Dhabi National Hotels (ADNH), a prominent hospitality group in the region, has announced that it is contemplating an initial public offering (IPO) for its catering business, ADNH Catering.
The announcement comes amidst a flurry of IPO activity in the Gulf region, as governments seek to deepen their capital markets and attract investment.
The deliberations regarding the potential IPO are still in the preliminary stages, and ADNH has stated that all options are being considered.
The company did not provide any specific timeline for the potential listing, indicating that the process is still in the early stages of evaluation.
The catering unit of ADNH operates in Saudi Arabia and the United Arab Emirates, providing food and support services.
In 2022, the unit reported revenues of AED1.8 billion ($490.12 million) and an operating profit margin of around 11 per cent. This performance highlights the potential for the catering business to attract investor interest through an IPO.
The Gulf region has witnessed a surge in IPO activity in recent years, with companies in the Middle East and North Africa raising $3.6 billion from 23 IPOs in the first half of 2024.
Notable examples include the Saudi healthcare provider Fakeeh Care Group, which raised $763.5 million, and the UAE supermarket franchisee Spinneys. Additionally, the hypermarket and mall operator Lulu is expected to go public later this year.
ADNH, founded in 1976, owns several prestigious hotels in Abu Dhabi, including the Ritz Carlton and Park Hyatt. The company’s shareholders include the sovereign wealth fund Mubadala and the UAE-based investment firm National Holding, further highlighting the strong backing and resources available to support the potential IPO.
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