IPO multiple times oversubscribed, highlighting strong investor confidence in UAE-based catering leader
ADNH Catering plc, a prominent food and support services provider in the UAE, has completed its highly successful initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX). The offering, which was heavily oversubscribed across all tranches, raised Dh864 million, marking a significant milestone for the company and reflecting substantial demand from both international and regional investors.
The IPO saw 900 million shares made available, representing 40% of ADNH Catering’s total issued share capital. The final offer price was set at Dh0.96 per share, at the top of the previously announced range. This pricing implies a market capitalization of Dh2.16 billion upon the company’s listing, which is expected to take place on Wednesday, October 23, 2024.
Strong Demand and Investor Confidence
The IPO was met with remarkable interest, with all tranches multiple times oversubscribed. This strong demand highlights the confidence investors have in ADNH Catering’s strategic direction and its potential for growth. Investors who subscribed through the First Tranche will receive SMS confirmations of their allocations on Monday, October 21, 2024, with refunds set to begin the same day.
Leadership and Future Growth
Clive Cowley, CEO of ADNH Catering, expressed his satisfaction with the outcome, stating: “We are delighted by the strong investor demand for our IPO, which reflects the confidence in ADNH Catering’s investment proposition, strategy, and trajectory.” He added, “As we look to the future, we remain committed to capitalizing on new opportunities in the UAE and Saudi Arabia, focusing on innovation and excellence in the catering and support services sector.”
Strategic Support from Key Financial Institutions
Citigroup Global Markets Limited and First Abu Dhabi Bank PJSC acted as Joint Global Coordinators and Joint Bookrunners for the offering, with additional support from Emirates NBD Capital PSC and Abu Dhabi Commercial Bank PJSC as Joint Bookrunners. First Abu Dhabi Bank PJSC served as the Lead Receiving Bank, alongside several other major UAE banks including Abu Dhabi Islamic Bank PJSC and Emirates NBD Bank PJSC.
The successful IPO marks a pivotal moment in ADNH Catering’s expansion, positioning the company for sustained growth and long-term value creation for its new shareholders.
