ADNH Catering announces plans to float 40% of its shares on ADX

UAE – Leading catering and support service provider ADNH Catering has announced intentions to list 40% of its ordinary shares on the Abu Dhabi Securities Exchange (ADX) as it seeks to take advantage of the listing boom and economic momentum.

The catering unit of Abu Dhabi National Hotels (ADNH) plans to issue 900 million shares with a nominal value of Dh 0.10 (US$0.027) per share through the IPO. All shares are currently held by the parent company.

The 900 million shares represent 40% of ADNH Catering’s total issued share capital.

However, the company’s final offering price will be determined through a rigorous book-running process.

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 are joint bookrunners.

Individual and retail investors along with ADNH employees can subscribe to the IPO through three splints.

ADNH revealed 10% of its share offerings will be exclusively available to its existing shareholders.

The subscription period for the offering will begin on October 7 and will end on October 14 for individual investors and eligible employees. Trading on the ADX should follow regulatory approval.

ADNH Catering, advised by its book-running partners, revealed it intends to pay a cash dividend of Dh 60 million (US$16.3 million) in April 2025 after the listing.

For the fiscal year ending December 31, 2025, the catering company intends to pay a total cash dividend of Dh 180 million (US$49 million) in two installments, split equally between H1, which is expected to be paid in October 2025 and H2, to be paid in April 2026.

For the fiscal year ending December 31, 2026, ADNH Catering intends to raise this dividend by 5%.

ADNH Catering is the latest company seeking to capitalize on the economic momentum in the UAE, the Middle East’s second-largest economy, and comes amid the continuing IPO boom in the country driven by growing investor demand.

ADNH Catering, which generates about 90% of its revenue from the UAE market, is optimistic about growth prospects in Saudi Arabia and plans to expand its business in the kingdom by about 10% annually going forward.

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