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Abu Dhabi National Hotels (ADNH) is planning to offer up to a 40% stake in an IPO on the ADX for its catering business, ADNH Catering, this month, according to a prospectus (pdf) published yesterday. ADNH will be offering their shares in the IPO.
We knew this was coming: ADNH tapped Citigroup and First Abu Dhabi Bank (FAB) to work on the planned IPO for ADNH Catering back in July.
The book-building process starts next Monday, 7 October, with the subscription period for retail investors wrapping on 14 October. Institutional investors’ subscription period will wrap a day later, on 15 October. Shares are expected to begin trading on 23 October, according to the prospectus.
The IPO is set to be priced on 7 October, with the range determined by the success of its book-building process.
The breakdown: Some 90% of the shares on offer will be allocated to institutional investors, while 9.83% will go to retail investors, and 0.17% will go to ADNH employees. Up to 10% of the company’s shares are also offered on a preferential basis to existing shareholders who subscribe to the offering,
More on ADNH Catering: ADNH owns 12 hotels in the UAE — including the Ritz Carlton and Park Hyatt in Abu Dhabi — and also manages three other hotels, its website says. The catering unit is the country’s largest provider of food services, cleaning and support services, and manpower supply. It serves hospitals, workplaces, universities and schools.
The company is looking to tap into the KSA market, where it currently operates via its JV with Compass Group, ADNH Compass, in which it bought out the remaining stake for AED 227 mn back in March. “We see the Kingdom of Saudi Arabia as a particularly compelling growth [window] for ADNH Catering, where we plan to build on our experience and track record across various sectors in the UAE to support clients across the country,” ADNH Catering CEO Clive Cowley said in a separate statement (pdf).
ADVISORS- FAB, Emirates NBD Capital, and Abu Dhabi Commercial Bank (ADCB) are acting as joint lead managers and joint bookrunners, with Citigroup and FAB also acting as joint coordinators. FAB is also the listing advisor and lead receiving bank of the IPO, with Abu Dhabi Islamic Bank, ADCB, Emirates NBD, and Emirates Islamic Bank acting as receiving banks.
REMEMBER- This would be the ADX’s fourth listing this year: ADNH Catering’s listing follows NMDC Energy’s AED 3.22 bn IPO earlier in September and edtech firm Alef Education’s AED 1.89 bn IPO in June. Earlier in May, Agility Global had a technical listing on the ADX in May, and quadrupled on its debut.
There’s more in the ADX pipeline:
- LuLu Group is planning to list its shares on the ADX and Riyadh’s Tadawul by the last week of October or early November;
- Alpha Data could tap the bourse this year;
- Etihad Airways has tapped advisors for what could be the Gulf’s first airline IPO next year.
