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Abu Dhabi National Hotels (ADNH) has reportedly tapped banks for a planned initial public offering (IPO) of its catering unit amidst a flurry of share sales in the UAE capital.
Citigroup Inc. and First Abu Dhabi Bank have been approached work on the listing, according to a report by Bloomberg, citing people who asked not to be identified. The share sale could raise about $300 million to $400 million, one of the people said, without providing further details on the offering size and timing.
Representatives of FAB and Citi declined to comment to Bloomberg, while ADNH didn’t respond to requests for comment.
Hotel owner and asset manager ADNH, listed on the Abu Dhabi Securities Exchange (ADX), owns properties such as The Ritz-Carlton Abu Dhabi, Grand Canal and Park Hyatt Hotel and Villas Abu Dhabi. The parent company has evolved into a hospitality group that includes hotels, restaurants, destination management services, catering, retail, facilities management, and transportation.
In May, ADNH reported 1.02 billion UAE dirhams ($277 million) in net profits attributable to the owners for the first quarter of 2024, up from AED 147.64 million in Q1 2023.
ADNH Catering describes itself as the largest provider of food services in the UAE, according to its website, serving hospitals, schools and universities, the oil and gas sector and defence and correctional area.
(Writing by Bindu Rai, editing by Seban Scaria)
