ADNH Catering, a subsidiary of Abu Dhabi National Hotels, announced the offer price range between Dh0.91 and Dh0.96 per share as a subscription for its on Monday.
The total offering size is expected to be between Dh819 million and Dh864 million, implying a market capitalisation at the time of listing between Dh2.05 billion and Dh2.16 billion.
The final offer price will be determined through a book-building process and is expected to be announced on Wednesday, October 16, 2024.
Around 900 million shares of ADNH are for retail and institutional investors.
The subscription period opened on Monday, October 7, and will end on Monday, October 14, for UAE retail investors and eligible employees. For professional investors, the subscription will end on Tuesday, October 15.
Up to 10 per cent of 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.
Citigroup Global Markets Limited and First Abu Dhabi Bank have been appointed as joint global coordinators and joint bookrunners. Emirates NBD Capital and Abu Dhabi Commercial Bank have been appointed joint bookrunners.
First Abu Dhabi Bank has been appointed as the lead receiving bank. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates NBD Bank and Emirates Islamic Bank have been appointed as receiving banks.
The company will list shares on the Abu Dhabi Securities Exchange and the shares are expected to start trading on Wednesday, October 23.
“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. Our market-leading position in the UAE, coupled with strong and resilient financial performance, ideally positions us to deliver long-term value to shareholders while capitalising on new opportunities and building deeper relationships with our existing clients,” said Clive Cowley, CEO of ADNH Catering.
“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. We look forward to welcoming new shareholders to join in our journey," said Cowley.
The company said shareholders reserve the right to amend the size of the offering at any time prior to the end of the subscription period, subject to applicable laws and the approval of the Securities and Commodities Authority.
The company earlier said the selling shareholder did not take a dividend from the group for the year ending September 30, 2024. The group intends to pay a cash dividend of Dh60 million in April 2025. For the performance in the financial year ending December 31, 2025, the company intends to pay a total cash dividend of Dh180 million, split equally between the first half of the financial year (which is expected to be paid in October 2025) and the second half of the financial year (which is expected to be paid in April 2026).
