ADNH Catering has priced its initial public offering between AED0.91 ($0.25) and AED0.96 per ($0.26) per share, implying a market capitalisation at the time of listing of between AED2.05 billion and AED2.16 billion ($588 million).
A leading food and support services provider in the UAE, ADNH also announced the start of the subscription period for its IPO on the Abu Dhabi Securities Exchange (ADX).
ADNH Company will make available in the offering a part of its shareholding in ADNH Catering comprising 900 million shares with a nominal value of AED0.10 each, representing 40% of ADNH Catering’s total issued share capital.
Existing shares
All of the offer shares are existing shares held by ADNH Company, a comprehensive semi-government hospitality group in Abu Dhabi, as the selling shareholder (the selling shareholder or ADNH Group), who reserves 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 and the approval of the Securities & Commodities Authority (SCA).
The subscription period is expected to close on Monday October 14, 2024 for the UAE retail offering and eligible employee offering and on Tuesday October 15, 2024 for the qualified investor offering.
The final offer price will be determined through a book building process and is expected to be announced on Wednesday October 16, 2024.
Admission of the shares to trading on ADX is expected to take place on Wednesday October 23, 2024.
Start of book building
Clive Cowley, Chief Executive Officer of ADNH Catering, said: “The start of the book building process for our IPO is a significant milestone for our company as our shareholder offers a 40% 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. 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."
Price stabilisation
In connection with the offering, the company and the selling shareholder have appointed BHM Capital Financial Services, who may, to the extent permitted by applicable law, and for stabilisation purposes, effect stabilising transactions with a view to supporting the market price of the Shares, in each case at a higher level than that which might otherwise prevail in the open market and at a price at or below the final offer price. The stabilisation manager will be appointed for a time period commencing on the date of trading of the shares on ADX and ending no later than 30 calendar days thereafter. As part of the offering, the Selling Shareholder will sell 90 million shares, representing 10% of the offer shares, and such shares will be allocated to investors as part of the normal allocation process for the offering.
Citigroup Global Markets Limited and First Abu Dhabi Bank PJSC have been appointed as Joint Global Coordinators and Joint Bookrunners. Emirates NBD Capital PSC and Abu Dhabi Commercial Bank PJSC have been appointed as Joint Bookrunners.
First Abu Dhabi Bank PJSC has been appointed as the Lead Receiving Bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Emirates NBD Bank PJSC and Emirates Islamic Bank PJSC have been appointed as Receiving Banks.
The Internal Shariah Supervision Committee of First Abu Dhabi Bank has issued a pronouncement confirming that, in their view, the offering is compliant with Shariah principles. Investors should undertake their own due diligence to ensure that the offering is Shariah compliant for their own purposes.--TradeArabia News Service
