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ADNH Catering plc, owned by Abu Dhabi National Hotels Co, on Monday announced its intention to proceed with an IPO and to list its ordinary shares on the Abu Dhabi Securities Exchange (ADX) next month.
This will potentially be the third IPO in Abu Dhabi this year and follows NMDC Energy, which raised $877 million and Alef Education Holding Plc. which raised $515 million.
Abu Dhabi National Hotels Co, a semi-government hospitality group, will sell 900 million shares, representing 40% of ADNH Catering’s total issued share capital.
The selling shareholder will retain the right to amend the size of the offering at any time prior to the end of the subscription period.
The offer price will be determined through a book building process. Up to 10% of the shares will be made available for allocation to existing shareholders of ADNH Group, a statement said.
The shares will be admitted to trading on ADX in October 2024.
Citigroup Global Markets Limited and First Abu Dhabi Bank PJSC have been appointed as joint global coordinators and joint bookrunners.
Emirates NBD Capital PSC and Abu Dhabi Commercial Bank PJSC are joint bookrunners.
Dividend policy
Following the IPO, ADNEC Catering intends to pay a cash dividend of 60 million dirhams ($16.3 million) in April 2025.
For financial year ending 31 December 2025, the company intends to pay a total cash dividend of AED 180 million, split equally between H1, which is expected to be paid in October 2025 and H2, to be paid in April 2026.
For 2025, ADNH Catering expects to raise the previous year’s dividend by 5%.
(Writing by Brinda Darasha; editing by Seban Scaria)
