Abu Dhabi National Hotels Catering (ADNH Catering) is preparing to launch its initial public offering (IPO), offering investors a chance to gain exposure to one of the UAE’s most established hospitality and catering service providers. As the latest entrant in the UAE’s vibrant IPO pipeline, ADNH Catering is poised to draw significant investor interest—especially in the wake of recent oversubscribed listings such as Alef Education, which raised $515 million earlier this year.

In this article, we outline everything prospective investors need to know about the ADNH Catering IPO: key offering details, subscription instructions, important timelines, and strategic considerations before participating.

Who is ADNH Catering?

ADNH Catering is a subsidiary of Abu Dhabi National Hotels (ADNH), a prominent hospitality group in the UAE. The company provides a wide range of services, from food preparation to support services such as general cleaning, housekeeping, pest control, and procurement services. Notably, its operations extend to Saudi Arabia, enhancing its regional presence and growth potential.

Key Details of the IPO

• Shares on Offer: A total of 900 million shares will be made available for both retail and institutional investors.
• Stake to Be Floated: ADNH Catering will float 40% of its total issued share capital, offering a substantial portion for public investment.
• Nominal Share Value: Each share will have a nominal value of Dh0.10.
• Offer Price: The final offer price will be determined after the book-building process is completed.
• Subscription Period:
  Retail Investors and Employees: From Monday, October 7, 2024, to Monday, October 14, 2024.
  Professional Investors: From Monday, October 7, 2024, to Tuesday, October 15, 2024.

Existing Shareholders: Preferential Rights

Up to 10% of the shares on offer will be reserved for existing shareholders of ADNH Group. Shareholders applying in either the First Tranche or the Second Tranche will receive preferential rights to the Reserved Shares, allocated on a pro rata basis in relation to their existing holdings.

ADNH Catering’s Listing and Lock-in Period

ADNH Catering plans to list on the Abu Dhabi Securities Exchange (ADX) in October, although the exact date has yet to be confirmed. Importantly, the shares held by the selling shareholders will be subject to a 180-day lock-in period after the IPO, meaning they cannot be sold until six months after admission.

Shariah Compliance and Dividends

For investors seeking Shariah-compliant investment opportunities, the Internal Shariah Supervision Committee of First Abu Dhabi Bank has confirmed that the ADNH Catering offering complies with Shariah principles. However, investors are encouraged to conduct their due diligence.

Regarding dividends, the selling shareholder confirmed that no dividend was taken for the September 30, 2024 financial year. However, following the IPO, ADNH Catering intends to pay a cash dividend of Dh60 million in April 2025. For the financial year ending December 31, 2025, the company aims to pay Dh180 million, with future dividends expected to increase by a minimum of 5% per year.

Banks Handling the Subscription

Investors interested in subscribing to the ADNH Catering IPO can do so through the following receiving banks:

• Lead Bank: First Abu Dhabi Bank
• Additional Banks: Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates NBD Bank, and Emirates Islamic Bank.

Get Expert Guidance on IPOs and Investments

Navigating an IPO can be complex, and making informed decisions that align with your investment strategy is crucial. NH Management offers expert consultancy services to guide you through IPO processes, investment opportunities, and financial planning. Whether you’re a seasoned investor or new to the UAE market, our consultants are here to assist you.

To learn more or discuss how we can support your investment journey, contact us at info@nhmanagement.com or +971 4 2221327.