Shares of ADNH Catering continue to struggle following its Abu Dhabi IPO with the result that the 10% brownshoe in the offer has been exhausted.

The 90m shares in the brownshoe have reduced the deal size to Dh778m from Dh864m in the base deal and the free-float to 36% from 40%. The stabilisation manager was BHM Capital.

Stabilisation has been observable since ADNH Catering shares debuted on October 23, with shares surging in the last few minutes of trading each day. That ensured the stock closed at the Dh0.96 issue price on the first two days and Dh0.959 on the third. As stabilisation ended on Thursday shares closed at Dh0.955, only 0.5% below issue and suggesting BHM's strategy of focusing on the close has been effective.

Shares rose 0.2% on Friday – without support from the 'shoe – to close at Dh0.957.

Purchases during stabilisation ranged from Dh0.941 to Dh0.96 per share.

Citigroup and First Abu Dhabi Bank were joint global coordinators, and joint bookrunners with Emirates NBD and Abu Dhabi Commercial Bank.

Source: IFR