ADNH Catering’s stock stays stable in early trading after raising $235.2 million in its IPO
Shares of ADNH Catering, the catering branch of Abu Dhabi National Hotels (ADNH), stayed mostly the same after being listed on the Abu Dhabi stock market on Wednesday but later moved slightly within a 1% range.
Share Trading Summary
- Share Price:
The company’s shares were trading at AED 0.961 per share at 8:00 am AST, slightly above the IPO offer price of AED 0.96. - Trading Rules:
For the first three days after listing, the share price will not follow the usual daily limits (15% up or 10% down). - IPO Details:
The company sold 900 million shares (40% of its total). This gave it a market value of $588.1 million (AED 2.2 billion) and raised $235.2 million (AED 864 million). - Seller:
All the shares sold were owned by the parent company, Abu Dhabi National Hotels (ADNH), which also owns luxury hotels like the Ritz Carlton and Park Hyatt in Abu Dhabi, as well as the JW Marriott and Sofitel in Dubai. ADNH is listed on the Abu Dhabi Securities Exchange (ADX). - IPO Timeline:
The IPO was open to UAE retail investors and employees from October 7 to 14, and for professional investors on October 15. It was very popular, with strong demand from regional and international investors. - Company Operations:
ADNH Catering operates in the UAE with over 18,000 employees and has a joint venture in Saudi Arabia employing about 1,000 people.
Big Number
As of October 23, 2024, ADNH Catering was worth $600 million (AED 2.2 billion) in the market.
Other Listings
ADNH’s initial public offering (IPO) came after NMDC Energy, part of the Abu Dhabi contractor National Marine Dredging Company, started trading on the Abu Dhabi Exchange (ADX) in September. This was the largest IPO in the UAE this year.
The share sale for NMDC Energy was very popular, being oversubscribed more than 31 times. It raised $876.7 million (AED 3.2 billion) by selling 23% of the company’s shares.
In the second quarter of 2024, the Middle East and North Africa (MENA) region saw a lot of IPO activity, with 14 companies raising $2.64 billion, mainly from Saudi Arabia, according to a report from E&Y in August.
The UAE also played a role in this activity. Alef Education Consultancy raised $515 million on the ADX, making up 19.5% of the total. Spinneys 1961 Holding raised $375 million by listing on the Dubai Financial Market. Together, these listings made up 33.8% of the total IPO proceeds for the quarter.
Published: 23rd October 2024
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