Today's Edition
SARA ALZAABI (ABU DHABI)
NMDC Energy, a provider of engineering, procurement and construction services for energy clients, and a subsidiary of NMDC Group, began trading on the Abu Dhabi Securities Exchange (ADX) on Wednesday following an Initial Public Offering (IPO) that was oversubscribed by 31.3 times.
Mohamed Hamad Ghanem Hamad Almehairi, Chairman of NMDC Energy, led the ADX bell-ringing ceremony and officially opened the market.
The event was attended by NMDC Group Chairman Mohamed Thani Murshid Al Rumaithi, along with members of the board of directors of NMDC Group and NMDC Energy.
The event celebrated the culmination of the NMDC Energy IPO and its transition to a publicly listed company.
The offering of 1.15 billion shares in NMDC Energy, representing 23 percent of the total share capital, was made available to eligible investors at Dh2.8 per share.
International Securities LLC acted as both the placement agent and listing advisor, with First Abu Dhabi Bank PJSC taking on the role of lead receiving bank and manager.
Mohamed Hamad Ghanem Hamad Almehairi, Chairman of NMDC Energy, said, "NMDC Energy's listing is an exceptional achievement that will define the pace for the sector's engineering, procurement and construction business in Abu Dhabi and beyond."
Yasser Zaghloul, Group CEO of NMDC, said, "Today is a historic day for NMDC Energy, our Group, and the UAE, and it is one that lays the foundation for more great things to come. On behalf of everyone in our Group, I would like to thank ADX for the opportunity to make history."
Ahmed Al Dhaheri, CEO of NMDC Energy, spoke to Aletihad on the significance of the company's milestone and its alignment with their broader strategy.
He described the ADX listing as a historic achievement, reinforcing the investment community's confidence in NMDC Energy's past success, current performance, and future potential.
"They recognise the potential, see the growth story, and believe in it," he said.
"With 51 years of strong foundation and numerous successes, the market's overwhelming response -27,000 applications and a 31-fold oversubscription -demonstrates this trust. Our clear dividend policy, announcing Dh700 million in distributions over the next three years, further illustrates our transparency."
The NMDC Energy's strategy, which includes both organic and inorganic growth, is set to enhance its performance through potential M&A transactions, he added.
Diversifying revenue streams and maintaining operational efficiency are essential to turning challenges into growth opportunities, Al Dhaheri noted.
He also pointed out the critical role of staying attentive and applying strategic measures to handle emerging risks.
"Challenges are inherent to our industry, but our strong performance and positive financial results clearly reflect our ability to navigate them successfully," he said.
With an eye on the future, Al Dhaheri said, "Our goal is to achieve a broader global footprint and expand our client base. This ambition is reflected in the target markets we are operating in. Reaching a stage where we sign contracts in various countries is not an easy feat."
Noting that expanding globally involves extensive preparation and a deep understanding of new markets, he cited their ongoing work in Taiwan and Southeast Asia as examples of how NMDC Energy develops and executes its international strategies.
International Securities LLC was the placement agent and listing advisor.
First Abu Dhabi Bank acted as lead receiving bank and lead manager for the IPO.
Abu Dhabi Commercial Bank, WIO Bank, and Al Maryah Community Bank were other receiving banks.
Hadef and Partners were the legal advisors. For 50 years, NMDC Energy has provided integrated engineering, procurement, and construction solutions to the energy sector.
The company's Abu Dhabi manufacturing facilities cover 1.3 million square metres, and it is also developing a new 400,000 square metre manufacturing facility at Ras Al Khair Port in Saudi Arabia.
NMDC Group is backed by Alpha Dhabi Holding, a fast-growing investment company in the Middle East and a subsidiary of International Holding Company (IHC).
