Abu Dhabi National Hotels has picked banks for a planned initial public offering of its catering business, joining a busy pipeline of new share sales in the Middle Eastern capital.
The owner of hotels including the Ritz-Carlton and Park Hyatt in Abu Dhabi has tapped Citigroup Inc. and First Abu Dhabi Bank to work on the listing of ADNH Catering, the people said, asking not to be identified as the information isn't public. The share sale could raise about $300 million to $400 million, one of the people said.
Details of the offering such as size and timing are still preliminary and subject to change, the people said.
Representatives for FAB and Citi declined to comment. ADNH didn't respond to requests for comment.
A wave of listing activity in the Arabian Gulf, which gathered steam in late 2021, has shown no signs of stopping as governments have sold stakes in state-owned businesses to reduce their reliance on the energy sector amid higher oil prices.
Likely IPOs in the United Arab Emirates' capital include a potential offering of Abu Dhabi flag carrier Etihad Airways and a listing of hypermarket chain LuLu Group International that could be one of the biggest in the Middle East this year.
ADNH Catering is the UAE's largest provider of food services, cleaning and support services, and manpower supply, according to its website. It serves establishments including hospitals, workplaces, universities and schools.
ADNH owns 12 hotels in the UAE and manages three others, according to its website. It generated revenue of Dh1.63 billion ($444 million) and a profit of Dh422.5 million in 2023.
