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The IPO of a 40% stake in Abu Dhabi National Hotels’ ADNH Catering raised AED 864 mn in gross proceeds as bookbuilding came to a close yesterday, the company said in a statement (pdf). The offering was “multiple times” oversubscribed, the bookrunners said as they priced ADNH Catering at AED 0.96 per share — the upper end of the AED 0.91-0.96 range on which they had guided.
That will give ADNH Catering a market cap of AED 2.16 bn at the start of trading on Wednesday, 23 October.
Who’s in? The offering attracted both international and regional investors. Bookrunnders didn’t name cornerstone investors and didn’t specify an oversubscription ratio.
What’s next? Retail investors in the first tranche will receive an SMS confirmation of their allocation on 21 October. You can check out the FAQ for the transaction here (pdf) or the memorandum for the international offering here (pdf).
REMEMBER- The company is currently looking into expanding into Saudi Arabia, particularly Jeddah and Riyadh.
ADVISORS- First Abu Dhabi Bank, Emirates NBD, Citigroup, and Abu Dhabi Commercial Bank (ADCB) acted as joint bookrunners, with Citigroup and FAB also acting as joint coordinators. FAB was also the lead receiving bank of the IPO, with Abu Dhabi Islamic Bank, ADCB, Emirates NBD, and Emirates Islamic Bank also acting as receiving banks. ADNH tapped BHM Capital as price stabilization manager.
