ADX Welcomes Successful Listing Of ADNH Catering With Strong Investor Interest

The Abu Dhabi Securities Exchange (ADX) has announced the listing of ADNH Catering plc, a prominent provider of food and support services in the UAE. Following a successful initial public offering (IPO), ADNH Catering raised AED864 million (US$235 million) by selling 900 million shares, which accounts for 40% of its total issued share capital. The IPO saw high demand, being oversubscribed over 15 times with more than AED13 billion in interest.

The final offer price was set at AED0.96 per share, the top of the announced range. This listing strengthens ADNH Catering's position as a leader in providing food and support services to sectors like healthcare, education, defence, and business across the region. The company's strong market presence is evident from its operations in key sectors within the UAE and Saudi Arabia.

Abdulla Salem Alnuaimi, Group CEO of ADX, expressed his congratulations to ADNH Catering on their successful listing. He stated, "We congratulate ADNH Catering on their successful listing and welcome the Company to the ADX family. As a leader in the food and support services sector, ADNH Catering brings immense value to our economy." Alnuaimi highlighted that this addition offers investors access to a dynamic industry with significant growth potential.

ADNH Catering's operations are extensive; as of June 30th, 2024, they managed around 160 on-site kitchens and delivered approximately 11 million meals monthly. They served 262 clients by September 30th, 2023. The company plans further expansion in Saudi Arabia, targeting Riyadh, Jeddah, and the Eastern region for growth.

Clive Cowley, CEO of ADNH Catering, remarked on the significance of their listing on ADX. He said, "Our successful listing on ADX not only demonstrates the strong investor support we have seen for our equity story and our attractive dividend profile but underscores our commitment to delivering long-term value for all stakeholders." Cowley emphasised their focus on expanding operations in both the UAE and Saudi Arabia while maintaining excellence in catering services.

Abu Dhabi National Hotels (ADNH), which owns ADNH Catering, has been listed on ADX since January 15th, 2001. The parent company has experienced substantial growth with its market capitalisation increasing by 360% by Q3 2024's end.

The Food & Beverage sector in the UAE is expanding due to changing demographics and a thriving business environment. This positions ADNH Catering well to meet growing demands while fulfilling its strategic growth objectives. The company aims to continue its success story within Abu Dhabi’s vibrant capital market.

With inputs from WAM