Abu Dhabi National Hotels launches IPO of catering unit

Abu Dhabi National Hotels (ADNH) said it will float a 40 percent stake in its catering unit, or 900 million shares, on the local stock exchange.  

The final offer price, determined through a book-building process, will be announced on October 16.

The sharia-compliant ADNH Catering shares sold are owned by ADNH, which trades on the Abu Dhabi Securities Exchange (ADX).

The subscription period will open on October 7 and end on October 14 for UAE retail investors and eligible employees. The subscription for professional investors will close on October 15.

The shares are expected to start trading on ADX next month.

The company provides food and support services in the UAE and through a joint venture in Saudi Arabia with Compass Group and Al-Rushaid Petroleum Investment Company.

ADNH Catering operates across five sectors: healthcare, business and industry, defence, correctional, and education, serving 262 clients in the year ended September 30, 2023.

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It operated 160 on-site kitchens as of June 30, 2024, serving over 11 million monthly meals, and was contracted to clean 160 facilities.

The company intends to pay a cash dividend of AED60 million ($16.3 million) in April 2025 for 2024. It intends to pay a total cash dividend of AED180 million, to be paid equally in October 2025 and April 2026.

Citigroup Global Markets Limited and First Abu Dhabi Bank have been appointed as joint global coordinators and joint bookrunners.

First Abu Dhabi Bank has been appointed as the lead receiving bank.

ADNH was founded in 1976 and owns hotels such as the Ritz Carlton, Sheraton and Park Hyatt in Abu Dhabi, among others.