ADNH Catering to list 40% of its shares on ADX

ADNH Catering, a unit of Abu Dhabi National Hotels, plans to list 40 per cent of its issued share capital on the Abu Dhabi bourse, as it seeks to leverage the economic momentum and listing boom in the Emirates this year.
The company plans to issue 900,000,000 shares with a nominal value of Dh 0.10 a share through an initial public offering on the main bourse of the Abu Dhabi Securities Exchange, it said on Monday.
All shares being offered for sale through the public float are held by the company’s parent ADNH, which also trades on the ADX.
UAE retail and institutional investors, along with ADNH employees, can subscribe to the IPO through three dedicated tranches. Up to 10 per cent of the share offering will be made available for allocation to existing shareholders of ADNH Group.
The subscription period for the deal will begin on October 7 and will end on October 14 for UAE retail investors and eligible employees, while it will close October 15 for professional investors.
The company said its final offering price will be determined through a book building process and it expects its shares to start trading on the ADX in October after the regulatory approvals.
“ADNH Catering is a market leader in the UAE with approximately 28 per cent share of its addressable market and a diversified client base across five strategic sectors,” Clive Cowley, chief executive of ADNH Catering, said.
The company has clients across government and the private sector, “with over 90 per cent of our contracts lasting for over five years”, Mr Cowley said. The company delivers more than 11 million meals a month, serving its more than 260 clients through 350 contracts, he added.
More to follow …