UAE – The catering unit of Abu Dhabi National Hotels (ADNH) aims to raise AED 864 million (US$235 million) from its IPO on the Abu Dhabi Securities Exchange (ADX) scheduled for late October after setting an offer price.

ADNH Catering set an initial offer price of between AED 0.91 to AED 0.96 per share (US$0.25 to US$0.26), which implies a market capitalization range of between AED 2.05 billion (US$577 million) and AED 2.16 million (US$588 million).

The catering wing revealed it plans to issue 900,000,000 shares on ADX, which represents 40% of ADH Catering’s total issued share capital.

The company therefore aims to raise US$235 million in the IPO offering.

ADNH Catering also revealed the subscription period is already ongoing and is expected to close on October 15 for the qualified investor offering.

The company revealed the subscription period will end on October 14 for the eligible employee offering and the UAE retail offering.

The catering company will announce the final offer price on October 16.

Up to 10% of the offer shares will be made available for existing shareholders of ADNH Group who apply in either the first tranche or the second tranche.

ADNH Catering revealed it intends the shares to hit the market on October 23.

Clive Cowley, Chief Executive Officer of ADNH Catering, said, “With exposure to high-growth sectors such as healthcare and education, and an expanding geographic footprint in Abu Dhabi and Dubai, we also see significant potential in Saudi Arabia, especially in the Eastern Region, Jeddah, and Riyadh, where we are already making excellent progress on expanding our operations.”

The company strives to use funding from the IPO to facilitate its expansion efforts in the UAE and Saudi Arabia.

Apart from food preparation, ADNH Catering offers services like housekeeping, general cleaning, and procurement in Saudi Arabia and the UAE.

The company has 160 on-site kitchens that serve 260 clients through 350 contracts, delivering more than 11 million meals every month.

ADNH Catering operates in Saudi Arabia through a joint venture with Compass Group and Al Rushaid Petroleum Investment Company. It plans to use part of the funding to expand its operations in Saudi Arabia by 10% every year.

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