Abu Dhabi National Hotels Plans IPO of Catering Business

Abu Dhabi National Hotels (ADNH), which is listed on Abu Dhabi Securities Exchange (ADX), on Monday announced that it will proceed with an initial public offering (IPO) for its catering business, ADNH Catering.

The company is planning to offer 40% of the total issued share capital of ADNH Catering (900 million shares) through ADX, with the selling shareholder retaining 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 of the UAE and the approval of the Securities and Commodities Authority (SCA).

The offer price per share will be determined through, and following, a book building process and the investors participating in the UAE retail offering will subscribe for the shares at the offer price, ADNH said.

The subscriptions open on October 7 and end on October 14 for UAE retail investors and eligible employees and on October 15 for professional investors. The Qualified Investor Offering subscription period expected to run from October 7 to October 15 2024.

For existing shareholders of ADNH Group, who apply for the reserved shares, shall be accorded preferential rights to the reserved shares pro rata to their percentage holdings in ADNH Group as at the close of trading on October 2.

The completion of the offering and admission is expected to take place in October 2024, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of admission to listing and trading on ADX.

Supporting UAE’s Hospitality Sector

ADNH Catering Chairman Khalaf Sultan Al Dhaheri said that since 1979, ADNH Catering has been a core component of the growth of the UAE’s hospitality industry, partnering with the government and private sector clients across food services and support services.

Al Dhaheri said that the company’s 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.

“The announcement has been made possible by the people and culture at ADNH Catering, where employees are the heart of the business, and by the support of our ambitious shareholder, Abu Dhabi National Hotels Company. Given the size of the market opportunity, which benefits from strong macroeconomic tailwinds and a clear growth strategy to create a leading GCC platform, ADNH Catering offers investors a truly compelling opportunity,” he added.

ADNH Catering’s CEO Clive Cowley said that the company is a market leader in the UAE with approximately 28% share of its addressable market and a diversified client base across five strategic sectors.

“We pride ourselves on our long-standing relationships with clients across government and the private sector, with over 90% of our contracts lasting for over five years. This success has been driven by a commitment to quality and a highly efficient and well-invested operating base that enables us to serve over 260 clients across 350 contracts and more than 11 million meals per month,” he said.

ADNH Hotels was founded in 1976 and owns hotels such as the Ritz Carlton and Park Hyatt in Abu Dhabi, among others. Its shareholders include Abu Dhabi’s sovereign wealth fund Mubadala and the UAE-based investment firm National Holding.