ADNH Catering has announced the price range for the sale of its shares and the start of the subscription period for its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX).
The company said that the offer price range had been set between AED0.91 and AED0.96 per share, implying a market capitalisation at the time of listing of between AED2.05bn ($557m) and AED2.16 billion ($588m).
Abu Dhabi National Hotels Company will make available in the offering a part of its shareholding in ADNH Catering comprised of 900,000,000 shares with a nominal value of AED0.10 each, representing 40 per cent of ADNH Catering’s total issued share capital.
ADNH Catering IPO in Abu Dhabi
The subscription period started today and is expected to close on Monday, October 14, for the UAE Retail Offering and Eligible Employee Offering and on Tuesday, October 15, for the Qualified Investor Offering.
The final offer price will be determined through a book building process and is expected to be announced on Wednesday, October 16.
Admission of the shares to trading on ADX is expected to take place on Wednesday, October 23.
All the offer shares are existing shares held by Abu Dhabi National Hotels Company, a comprehensive semi-government hospitality group in the emirate, as the selling shareholder, who reserves the right to amend the size of the offering at any time prior to the end of the subscription period at its sole discretion, subject to applicable laws and the approval of the Securities and Commodities Authority (SCA).
Clive Cowley, Chief Executive Officer of ADNH Catering, said: “We are excited to announce the start of the book building process for our IPO, a significant milestone for our company as our shareholder offers a 40 per cent stake to local and international investors seeking to participate in the growth of a leading regional player.
“With exposure to high-growth sectors such as healthcare and education, and an expanding geographic footprint in Abu Dhabi and Dubai, we also see significant potential in Saudi Arabia, especially in the Eastern Region, Jeddah, and Riyadh, where we are already making excellent progress on expanding our operations.”
Up to 10 per cent of the Offer Shares will be made available for allocation to existing shareholders of ADNH Group who apply in either the First Tranche or the Second Tranche only in priority to other applicants.
Follow us on
