A. SREENIVASA REDDY (ABU DHABI)
Abu Dhabi National Hotels (ADNH) is selling a 40% stake in its catering business (ADNH Catering) through an initial public offering (IPO) on Abu Dhabi Securities Exchange (ADX). A total of 900 million shares will be on offer during the IPO.
ADNH Catering is an established market leader in the food services market in the UAE, commanding an approximate 28% share of its addressable market in the UAE in 2023. The company has a significant geographical presence in strategic locations across the UAE and Saudi Arabia.
The offer price for the IPO will be determined through a book-building process from October 7 to 16. The price range for the shares and the commencement of subscriptions will happen on October 7. The closing date for the general public tranche will be on October 14, and for professional investors, it will be on October 15. The final offer price will be fixed on October 16. It is expected to be listed on October 23.
Up to 10% of shares will be made available for allocation to existing shareholders of ADNH Group, who can apply in either the First Tranche or the Second Tranche.
Commenting on the offering, Khalaf Sultan Al Dhaheri, Chairman of ADNH Catering, said: “I am delighted to announce our intention to float a 40% equity stake in ADNH Catering on the Abu Dhabi Securities Exchange. Since 1979, ADNH Catering has been a core component of the growth of the UAE’s hospitality industry. Its proven track record, specialised expertise and focus on innovation and development has enabled it to be a long-term partner of choice for leading institutions and companies in the UAE and Saudi Arabia.”
Citi and FAB were appoined as joint global coordinators and joint bookrunners for the IPO, while ENBD and ADCB were named joint bookrunners.