Abu Dhabi National Hotel Catering (ADNH Catering) has announced its initial public offering (IPO), becoming the latest company to seek public funding. The company is a subsidiary of Abu Dhabi National Hotels (ADNH) and specializes in food preparation, housekeeping, pest control, and procurement services, with operations in the UAE and Saudi Arabia.
Investors have the opportunity to subscribe to 900 million shares, with 40% of the company's share capital up for grabs. The nominal value of the shares is set at AED 0.10, with the offer price being determined through a book-building process. The subscription period for UAE retail investors begins on October 7, 2024, and will run until October 14. Professional investors have an extended deadline of October 15.
Existing shareholders of ADNH will have preferential access to up to 10% of the offer shares. The IPO is Shariah-compliant, as confirmed by First Abu Dhabi Bank's Shariah Supervisory Committee. Investors can subscribe through several banks, including First Abu Dhabi Bank, Abu Dhabi Commercial Bank, and Emirates NBD.
ADNH Catering plans to list on the Abu Dhabi Securities Exchange in October 2024. Post-IPO, the company intends to distribute dividends, starting with AED 60 million in April 2025 and continuing with an increase of 5% annually. This IPO is expected to generate strong interest from both retail and institutional investors, following the trend of oversubscribed IPOs in the UAE market.
