ADNH Catering sets IPO range as bookbuilding kicks off: Abu Dhabi National Hotels ’ (ADNH) catering business, ADNH Catering, has set an indicative price range of AED 0.91-0.96 per share for its IPO, valuing the company at up to AED 2.16 bn, it said in a statement (pdf) yesterday. The share sale could see ADNH Catering raise somewhere between AED 819 mn and AED 864 mn. The final share price will be announced next Wednesday, 16 October.

ICYMI- ADNH is offering up to a 40% stake (900 mn shares) in an IPO on the ADX for ADNH Catering, with up to 10% of the company’s shares offered on a preferential basis to existing shareholders who subscribe to the offering. This is set to be Abu Dhabi’s fourth IPO of the year, following the successful IPOs of NMDC Energy, which raised AED 3.22 bn, edtech firm Alef Education, which raised AED 1.89 bn, and Agility Global, which, quadrupled on its debut.

The retail subscription period kicked off yesterday, and is open until next Monday, 14 October, while the subscription period for institutional investors wraps on Tuesday, 15 October. Shares are expected to begin trading on 23 October, according to the prospectus.

REMEMBER- The company is looking to tap into the KSA market, especially the “Eastern region,” including Jeddah and Riyadh, where the company is expanding operations, CEO Clive Cowley said in the statement. ADNH Catering currently operates in the Kingdom via its JV with Compass Group, ADNH Compass, in which it bought out the remaining stake for AED 227 mn back in March.

ADVISORS- First Abu Dhabi Bank, Emirates NBD Capital, Citigroup, and Abu Dhabi Commercial Bank (ADCB) are acting as 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. ADNH tapped BHM Capital as price stabilization manager for the shares of ADNH Catering.

REMEMBER- 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.

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