ADNH Catering, a subsidiary of Abu Dhabi National Hotels, aims to raise up to AED 864M from its initial public offering on the Abu Dhabi Securities Exchange this month, driven by increasing investor interest in the region.
The company has set the offer price between AED 0.91 and AED 0.96 per share, planning to issue 900 million shares, or 40 per cent of its total share capital.
All shares offered are held by the parent company, ADNH, which is also listed on the ADX. The subscription period starts on 7 October and will close on 14 October for UAE retail investors and eligible employees, while professional investors have until 15 October to subscribe.
ADNH Catering will announce the final offer price on 16 October, with trading anticipated to begin on 23 October.
The company provides food preparation, cleaning, housekeeping, pest control, and procurement services across the UAE and Saudi Arabia, operating in sectors such as healthcare, defence, and education. It manages around 160 kitchens serving over 260 clients through 350 contracts, delivering over 11 million meals monthly.
CEO Clive Cowley highlighted the company’s potential in high-growth sectors and expanding presence in Abu Dhabi and Dubai, as well as opportunities in Saudi Arabia, especially in the Eastern Region, Jeddah, and Riyadh.
ADNH Catering holds a 30 per cent stake in a Saudi joint venture and is negotiating to increase its share. The firm is also considering acquiring stakes in smaller complementary businesses within the UAE to enhance its operations.
The IPO boom in the UAE follows the successful listing of NMDC Energy, which raised AED 3.22B and was oversubscribed by more than 31 times. ADNH Catering is advised by Citigroup, First Abu Dhabi Bank, and others, with FAB as the lead receiving bank.
