UAE construction and dredging services firm NMDC Group, which is backed by International Holding Company’s Alpha Dhabi Holding, has secured approvals to proceed with its subsidiary’s $877 million initial public offering (IPO).

The Abu Dhabi Securities Exchange (ADX) and the Securities and Commodities Authority (SCA) have given the go-ahead for the offering of 1.150 billion shares in NMDC Energy at AED 2.8 ($0.76) per share, the group confirmed on Wednesday.

The shares will be up for subscription from Friday, August 30 for individual investors in the UAE. The subscription will remain open until September 4 for qualified and professional investors.

The new share sale is expected to outpace the proceeds raised by Alef Education Holding. The EdTech's $515 million IPO is so far the biggest in the UAE this year.

NMDC Energy is a key subsidiary of NMDC Group, which is backed by IHC unit Alpha Dhabi Holding.

The NMDC subsidiary’s portfolio includes manufacturing facilities in Abu Dhabi, covering 1.3 million square metres. It has a backlog valued at around AED 54 billion, spanning various sectors and regions, as of June this year.

It provides integrated solutions in the energy sector, including engineering, procurement and construction services.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com