NMDC Group recently announced the successful closing of the NMDC Energy initial public offering (IPO) which was oversubscribed by 31.3 times excluding the cornerstone tranche. The offering attracted exceptional investor interest, generating a total gross demand of AED88 billion ($23.96 billion).
The offering of 1.15 billion shares in NMDC Energy, or 23 percent of the total share capital, was available to eligible investors at AED2.8 per share. The NMDC Energy IPO saw outstanding demand across all segments, becoming oversubscribed within hours of its launch on August 30. At the close of the subscription period, the retail tranche was oversubscribed 600 times. Meanwhile, the professional tranche was oversubscribed by 16.7 times. The offering will generate AED3.22 billion ($876.6 million) for NMDC Group.
“The immense investor interest in our IPO clearly demonstrates that the market understands the value and potential of NMDC Energy. Additionally, this IPO consolidates the UAE’s position as a leader in supplying the world’s energy needs,” stated Ahmed Al Dhaheri, CEO of NMDC Energy.
Shares to list on ADX starting September 11
NMDC Energy’s constitutive general assembly meeting will take place on September 9. Meanwhile, trading on the ADX will begin on Wednesday, September 11, subject to the necessary conditions and approvals. The shares will trade under the symbol NMDCENR.
“As we prepare for a new phase as an ADX-listed company, we will build on this milestone by targeting organic and inorganic growth, expanding our geographical reach, as well as creating synergies that drive transformation and innovation across the business,” Al Dhaheri added.
First Abu Dhabi Bank PJSC acted as lead receiving bank and lead manager for the NMDC Energy IPO. Abu Dhabi Commercial Bank PJSC, WIO Bank PJSC, and Al Maryah Community Bank LLC were other receiving banks. Meanwhile, International Securities LLC was the placement agent and listing advisor. Hadef & Partners were the legal advisors.
“The future will see NMDC Energy pioneering solutions that power industries and inspire and uplift communities both regionally and globally,” stated Yasser Zaghloul, group CEO of NMDC.
NMDC Energy expansion plans
With over 50 years of global experience, NMDC Energy provides integrated solutions in the energy sector, including engineering, procurement and construction services. The company operates modern manufacturing facilities in Abu Dhabi, covering 1.3 million square meters.
As of June 30, 2024, NMDC Energy’s backlog reached approximately AED54 billion in value, spanning diverse sectors and regions. The company has a diverse international portfolio with a strong presence in the UAE, Saudi Arabia, Kuwait, India, and Taiwan. The company is also developing a new 400,000-square-metre manufacturing facility at Ras Al Khair Port in Saudi Arabia.
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