NMDC Group announced today that the initial public offering (IPO) for 1.15 billion shares in its wholly owned subsidiary NMDC Energy has been oversubscribed within hours of the first day of its subscription period.
Wholly owned by NMDC Group, NMDC Energy boasts a solid track record achieved through robust revenue growth, which is backed by IHC unit Alpha Dhabi Holding.
NMDC Energy has a share capital of AED2.5 billion divided into five billion shares with a nominal value of AED0.5 each. Offer shares are available to eligible investors at AED2.8 per share. The subscription period will close on Wednesday, September 4, 2024. NMDC Energy intends to list its shares on the Abu Dhabi Securities Exchange (ADX) on Wednesday, September 11, 2024.
Strong investor interest
“Strong early investor interest in the NMDC Energy IPO sends a clear message about confidence in both the solid fundamentals and significant growth potential of the business. This IPO will support the expansion of NMDC Energy, accelerate innovation and deliver long-term value to shareholders,” group CEO Yasser Zaghloul said.
The lead receiving bank and lead manager for the IPO is First Abu Dhabi Bank PJSC.
Other receiving banks for the IPO are Abu Dhabi Commercial Bank PJSC, WIO Bank PJSC, and Al Maryah Community Bank LLC. The placement agent for the IPO and listing advisor for NMDC Energy is International Securities LLC.
A driving force
As a driving force behind Abu Dhabi’s development, NMDC Group plays a crucial role in advancing the UAE’s vision of a modern, progressive landscape and boosting the local economy. The group’s extensive expertise enhances infrastructure across the region, with a strong commitment to sustainability and environmental conservation.
NMDC Energy, a key subsidiary of NMDC Group, 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 was approximately AED54 billion, spanning diverse sectors and regions. The company has successfully executed over 1,200 strategic projects, including the construction of more than 1,360 facilities and the installation of approximately 8,000 kilometres of onshore and offshore pipelines and 2,000 kilometres of submarine cables.
With over 50 years of global experience, NMDC Energy has a diverse international portfolio with a strong presence in the UAE, Saudi Arabia, Kuwait, India and Taiwan. To further expand its capabilities, the company is developing a new 400,000-square-meter manufacturing facility at Ras Al Khair Port in Saudi Arabia.
In its recent financial results for the first half of 2024, NMDC Group reported a 79 percent increase in revenue, reaching approximately AED12.126 billion, compared to AED6.765 billion in the first half of 2023. Net profits rose by 66 percent to approximately AED1.461 billion, up from AED881 million in the same period last year. The group’s asset value also grew significantly, reaching approximately AED28.501 billion during the first half of 2024, up from AED20.847 billion at the end of 2023, an increase of AED7.654 billion.
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