NMDC Energy Plans IPO, To Raise $880 Million

NMDC Group on Thursday announced an initial public offering (IPO) in the UAE of 1.15 billion shares in its wholly owned subsidiary, NMDC Energy, at $0.76 per share, and the intention to list NMDC Energy on the Abu Dhabi Securities Exchange (ADX) on 11 September 2024.

The IPO of NMDC Energy will raise up to $880 million for the company, NMDC Group informed the ADX on Thursday.

NMDC Energy is currently wholly owned by the Company and has a share capital of $680 million divided into five billion shares with a nominal value of $0.14 each. The shares will be offered at $0.76 per share to eligible investors.

The company said that the subscription period for the IPO will commence on 30 August 2024 and close six days later. NMDC Energy intends to list its shares on the ADX on 11 September 2024, according to the company’s website.

The allocation of professional shares and cornerstone shares will begin on 7 September 2024. The allocation of retail offer shares and SMS notification to the successful subscribers also begin the same day.

The commencement of refunds of investment surplus to the subscribers and dispatch of allotment letters will start from 9 September 2024 and the constituent General Assembly meeting will be held on the same day.

The lead receiving bank and lead manager for the IPO is First Abu Dhabi Bank and other receiving banks are Abu Dhabi Commercial Bank, WIO Bank PJSC, and Al Maryah Community Bank. The placement agent for the IPO and listing advisor for NMDC Energy is International Securities.

EPC Services

NMDC Energy, formerly known as the National Petroleum Construction Company (NPCC), was established in 1973. Together with its subsidiaries, NMDC Energy provides engineering, procurement, and construction (EPC) services to both offshore and onshore clients in the energy industry.

Currently, NMDC Energy has a project backlog that underpins its future performance and growth prospects.

As of 30 June 2024, NMDC Energy has a secured backlog of approximately $14.7 billion, reflecting its strong market position and the sustained demand for its services. This backlog encompasses a diverse portfolio of high-value onshore and offshore projects in the market it operates.

The company said that more than 100 projects have been delivered to client satisfaction in past 10 years and it has a track record of consistent growth and margin profile.

“With its diverse skillset, state-of-the-art construction yards, and remarkable fleet, NMDC Energy delivers innovative and sustainable EPC solutions to major clients in the Arabian Gulf, South and South East Asia, and further afield,” NMDC Energy said in the prospectus.