ADNH Catering Raise $235 Million Through Its IPO

ADNH Catering, a leading food and support services provider in the UAE incorporated in the Abu Dhabi Global Market (ADGM), has successfully completed the book-build and public subscription process for its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX).

ADNH Catering confirmed that the final offer price for its ordinary shares has been set at $0.26 per share, pricing at the top of the previously announced offer price range and 900,000,000 shares were made available in the IPO, representing 40% of ADNH Catering’s total issued share capital, raising gross proceeds of $235 million, and implying a market capitalisation of the Group at listing of $588 million.

The IPO was multiple times oversubscribed across each of the first, second and third tranches (as described in the Prospectus), with substantial demand from both international and regional investors.

The company said that admission of shares to trading on the ADX is expected to take place on 23 October 2024.

Strong Demand

ADNH Catering CEO Clive Cowley said that they were delighted by the strong investor demand for their IPO, which reflected the confidence that investors have in ADNH Catering’s investment proposition, strategy and trajectory.

Today is another important milestone in the company’s story, as it continues to expand its operations in pursuit of long-term and sustainable value for all stakeholders, he said.

“As a business, we remain firmly committed to capitalising on new opportunities in the UAE and Saudi Arabia, while maintaining our focus on excellence and innovation in the catering and support services sector. As we look to the future, we warmly welcome our new shareholders and look forward to delivering both on our attractive dividend policy and our determined growth plans,” he added.

Based on the Final Offer Price, ADNH Catering’s market capitalisation upon listing will be $588 million). Investors who subscribed through the first tranche will receive an SMS confirmation of their respective allocation on 21 October 2024, with refunds due to commence from the same date.

Citigroup Global Markets Limited and First Abu Dhabi Bank have been appointed as Joint Global Coordinators and Joint Book runners while Emirates NBD Capital and Abu Dhabi Commercial Bank have been appointed as Joint Book runners.

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.

ADNH Catering was founded in 1976 as a semi-government company acting as hotel owner and asset manager. Over the years, it has evolved into a comprehensive hospitality group, offering a wide range of services including hotels, restaurants, destination management, catering, and transportation.