On Friday, the UAE’s NMDC Group revealed that investors oversubscribed the initial public offering (IPO) of its subsidiary, NMDC Energy, within hours on the first day of the subscription period. This swift response indicates strong demand for what is expected to be the UAE’s largest listing of the year.
The firm, which specialises in construction and dredging services, is offering 1.15 billion shares at a price of AED 2.8 each, aiming to raise $877M through the IPO.
“Strong early investor interest in the NMDC Energy IPO underscores confidence in the company’s robust fundamentals and substantial growth potential. This offering will fuel NMDC Energy’s expansion, drive innovation, and create lasting value for shareholders,” said Yasser Zaghloul, NMDC Group CEO.
NMDC is offering the shares in two segments — institutional and retail investors — from 30 August to 4 September, with trading set to begin on 11 September 2024 on the Abu Dhabi Securities Exchange.
Al Ataa Investment has committed to buying 142.5 million shares, representing about 12.39% of the offering, as a cornerstone investor in the IPO. First Abu Dhabi Bank is the lead manager, with Abu Dhabi Commercial Bank, WIO Bank, and Al Maryah Community Bank serving as receiving banks.
The group, which has previously invested in the IPOs of ADNOC Gas and ADNOC L&S, secured several contracts from ADNOC Group this year, including a $200M dredging project for a natural gas export facility.
Founded in 1973, NMDC Energy has completed over 1,200 projects, installing around 1,360 structures, laying 8,000 km of pipelines, and 2,000 km of marine cables.
The group’s assets increased by AED 7.7B to AED 28.5B in the January-June period, compared to AED 20.8B in the corresponding period in 2023.