UAE's ADNH Catering confirms IPO price at Dh0.96/share, gross proceeds at Dh864m
UAE's latest IPO offered 40%, and each of 3 tranches was oversubscribed
Dubai: The UAE's latest IPO, from ADNH Catering, has set the price at Dh0.96 a share, which is at the higher end of the range offered at the time of subscription opening on October 7. The Abu Dhabi company raised gross proceeds of Dh864 million for a 40% stake, which implies a market cap of Dh2.16 billion at the time of listing on ADX.
The company had earlier set an IPO price range of Dh0.91-Dh0.96 a share.
The ADX debut is set for October 23. ADNH Catering has a near 30% market share in the UAE, operates two central kitchen facilities in Abu Dhabi and Dubai, and has long-duration contracts with leading government establishments in Abu Dhabi. It will be gunning for more projects in Dubai and the northern emirates. Plus, there is also the fairly well-established joint venture in Saudi Arabia.
The company intends to pay Dh180 million as dividend for 2025. "We remain firmly committed to capitalizing on new opportunities in the UAE and Saudi Arabia, while maintaining our focus on excellence and innovation in the catering and support services sector," said Clive Cowley, CEO.
The IPO was split into 3 tranches, and each one ended up oversubscribed. Apart from retail and institutional clients, a percentage was also set aside for eligible employees.
ADNH Catering was the first UAE IPO in the final quarter of 2024, and now investors are already primed for more action coming their way, with Lulu Group being the biggest attraction. There has been a buzz around Talabat, the delivery services firm.