Abu Dhabi National Hotels to Launch IPO for ADNH Catering in October 2024

Abu Dhabi National Hotels Co. (ADNH) has announced plans to proceed with an Initial Public Offering (IPO) of its subsidiary, ADNH Catering, on the Abu Dhabi Securities Exchange (ADX) in October 2024. The company will offer 40% of its stake, or 900 million shares, to investors. The final price of the shares will be determined through a book-building process. This IPO will be the third in Abu Dhabi this year, following NMDC Energy and Alef Education.

ADNH Catering’s IPO is designed to support the growth of its food and support services operations. The company has committed to a dividend policy following the IPO, with a cash dividend of AED 60 million ($16.3 million) set for April 2025. For the fiscal year ending December 2025, ADNH Catering plans to distribute AED 180 million, with payouts in two tranches: AED 90 million in October 2025 and AED 90 million in April 2026.

IPO Details and Market Impact
The IPO will be managed by major financial institutions, including Citigroup Global Markets Limited and First Abu Dhabi Bank PJSC, which have been appointed as joint global coordinators and bookrunners. Additionally, Emirates NBD Capital PSC and Abu Dhabi Commercial Bank PJSC will act as joint bookrunners.

This IPO follows a successful year for ADX, with companies such as NMDC Energy raising $877 million and Alef Education Holding PLC securing $515 million through their own public offerings. The listing of ADNH Catering further boosts Abu Dhabi’s position as a growing hub for public offerings, increasing investor confidence in the region’s capital markets.

Existing shareholders of ADNH Group will have the opportunity to participate, with 10% of the offered shares allocated to them. The selling shareholder retains the right to adjust the offering size before the subscription period concludes.

The company’s strong dividend policy and commitment to expansion make the IPO a potentially attractive opportunity for investors, further contributing to the UAE’s robust financial markets.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels