Abu Dhabi Securities Exchange (ADX) announced that it will list the shares of ADNH Catering in the First Market under the trading symbol (ADNHC) with effect from October 23, 2024.
The company’s share price shall be floated for three trading sessions starting from the listing date so that the price is not subject to the permitted daily rise and fall limits (15 percent highest and 10 percent lowest) during these three sessions.
Shares to begin trading at AED0.96
In accordance with the decision of the ADX board of directors, the reference price of ADNH Catering’s shares when it begins trading in the market is the final offering price for public subscription, which is AED0.96.
The company has successfully completed the book build and public subscription process for its initial public offering (IPO) on ADX.
ADNH Catering made a total of 900 million shares available in the offering, representing 40 percent of its total issued share capital. The IPO raised gross proceeds of AED864 million ($235.2 million), implying a market capitalization of AED2.16 billion at listing.
The IPO experienced significant oversubscription across all three tranches, with robust interest from both international and regional investors.
Read: Finance House to invest $81.67 million in Abu Dhabi capital market
Growth prospects
Clive Cowley, chief executive officer, ADNH Catering, had previously expressed his excitement about the strong investor interest in the IPO. He noted that it reflects confidence in the company’s investment potential, strategic direction, and growth trajectory.
“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,” stated Cowley. The company also has long-standing relationships with clients across the government and the private sector, with over 90 percent of its contracts lasting for over five years.
Notably, ADNH Catering 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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