ADNH Catering, a subsidiary of the semi-government hospitality group Abu Dhabi National Hotels (ADNH Hotels), has announced its plan to go public this month. This move follows a trend of companies opting for initial public offerings (IPOs) to raise funds for expansion within the UAE and beyond. The UAE bourses, including the Dubai Financial Market and Abu Dhabi Securities Exchange, have witnessed a surge in IPOs in recent years. Notably, Alef Education raised $515 million (Dh1.89 billion) through its listing on the Abu Dhabi bourse in the second quarter.
ADNH Catering offers a comprehensive range of services, including food preparation, service, and support services such as general cleaning, housekeeping, pest control, and procurement. The company also has operations in Saudi Arabia. The IPO will offer 900 million shares, representing 40% of the company’s total issued share capital, with a nominal share value of Dh0.10. The offer price will be determined after the book-building process, with the subscription period running from October 7 to October 14 for UAE retail investors and eligible employees, and ending on October 15 for professional investors.
Existing shareholders of ADNH Group can apply for up to 10% of the offer shares, with preferential rights based on their holdings as of October 2. ADNH Catering plans to list on the Abu Dhabi Securities Exchange in October, with a lock-up period of 180 days for selling shareholders. First Abu Dhabi Bank is the lead receiving bank, with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates NBD Bank, and Emirates Islamic Bank also appointed as receiving banks. The offering has been confirmed as Shariah-compliant by the Internal Shariah Supervision Committee of First Abu Dhabi Bank.
The company plans to pay a cash dividend of Dh60 million in April 2025, followed by Dh180 million split equally in October 2025 and April 2026. For the financial year ending December 31, 2026, the dividend will increase by at least 5%, with future dividends linked to the group’s financial performance and paid semi-annually.
