ADNH Catering, a prominent food and support services provider in the UAE, saw its shares close unchanged on the first day of listing at the Abu Dhabi Securities Exchange. Despite trading in negative territory for most of the day, the Abu Dhabi-headquartered company's shares ended at Dh0.96, the same as its final offer price announced during its initial public offering (IPO) earlier this month.
The broader market trend was also negative, with the Abu Dhabi bourse closing 0.449 per cent lower at 9,204.85 points. In contrast, some previously listed companies on the UAE bourses experienced significant jumps on their first trading days. ADNH Catering's IPO, which raised Dh864 million, was priced at the top of the offer range, valuing the company at Dh2.16 billion. The offering attracted strong interest from both international and regional investors, being oversubscribed more than 15 times and drawing over Dh13 billion in demand.
The company sold 900 million shares, representing 40 per cent of its total issued share capital. Clive Cowley, CEO of ADNH Catering, expressed the firm's commitment to capitalizing on new opportunities in the UAE and Saudi Arabia while maintaining excellence and innovation in the catering and support services sector. He also welcomed new shareholders and looked forward to delivering on both dividend and growth plans.
ADNH Catering marks the 8th offering and 23rd listing on the Abu Dhabi Securities Exchange this year. Abdulla Salem Alnuaimi, group CEO of ADX, highlighted the value ADNH Catering brings to the economy, offering investors access to a dynamic industry with strong growth potential. As the F&B sector in the UAE and region continues to expand, ADNH Catering is well-positioned to meet increasing demand and fulfill its growth strategies.
Abu Dhabi National Hotels, the parent company of ADNH Catering, has been listed on ADX since January 15, 2001, and has seen a 360 per cent growth in its market capitalization up to Q3 2024. Clive Cowley reiterated the company's focus on expanding operations in the UAE and Saudi Arabia, noting the strong investor support for its equity story.
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