ADNH Catering, a leading food and support services provider in the UAE incorporated in the Abu Dhabi Global Market (ADGM), recently announced its initial public offering (IPO) and its intention to list its ordinary shares on ADX.
The company plans to list 900,000,000 shares each with a nominal value of AED0.10. Abu Dhabi National Hotels Company holds all the shares for the ADNH Catering IPO. The selling shareholder is listed on ADX under ticker symbol “ADNH”.
“ADNH Catering is a market leader in the UAE with approximately 28 percent 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 percent of our contracts lasting for over five years,” stated Clive Cowley, CEO of ADNH Catering.
Eligible investors
The company also announced that it will make the IPO available to UAE retail investors as part of the first tranche. The shares will also be available to professional investors as part of the second tranche and eligible employees of ADNH Group as part of the third tranche.
ADNH Catering also noted that it will make 10 percent of the IPO available for allocation to existing shareholders of ADNH Group, who apply in either the first tranche or the second only in priority to other applicants.
The subscription period will open on October 7 and end on October 14 for UAE retail investors and eligible employees and on October 15 for professional investors.
The company also announced that the offer price will be determined through a book-building process and admission of the shares to trading on ADX is expected to take place in October 2024.
ADNH Catering appointed Citigroup Global Markets Limited and First Abu Dhabi Bank PJSC as joint global coordinators and joint bookrunners for the IPO. Meanwhile, it appointed Emirates NBD Capital PSC and Abu Dhabi Commercial Bank PJSC as joint bookrunners.
ADNH Catering also appointed First Abu Dhabi Bank PJSC as the lead receiving bank. Meanwhile, Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Emirates NBD Bank PJSC, and Emirates Islamic Bank PJSC will act as the IPO’s receiving banks.
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Sector prospects
Notably, the company also operates in Saudi Arabia via a joint venture with Compass Group and Al-Rushaid Petroleum Investment Company.
“Since 1979, ADNH Catering has been a core component of the growth of the UAE’s hospitality industry, partnering with government and private sector clients across food services and support services,” stated Khalaf Sultan Al Dhaheri, chairman of ADNH Catering.
In 2023, the food services market in the UAE and Saudi Arabia reached $5.2 billion and will likely grow to $6.8 billion by 2028. Of the total food services market, the Group’s Addressable Market reached a value of $3.5 billion in 2023 and will likely grow to $4.5 billion by 2028.
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