NMDC Energy IPO Closes With Remarkable 31.3 Times Oversubscription

NMDC Group, a prominent player in engineering, procurement, construction, and marine dredging, has announced the successful closing of NMDC Energy's Initial Public Offering (IPO). The IPO was oversubscribed by 31.3 times, excluding the cornerstone tranche, generating AED88 billion in total gross demand. This remarkable interest underscores investor confidence in NMDC Group's future prospects.

The IPO offered 1.15 billion shares at AED2.8 per share, representing 23 percent of NMDC Energy's total share capital. The offering saw overwhelming demand across all segments and was oversubscribed within hours of its launch on 30th August 2024. By the end of the subscription period, the retail tranche was oversubscribed 600 times, while the professional tranche saw a 16.7 times oversubscription. This will generate AED3.22 billion for NMDC Group.

Yasser Zaghloul, Group CEO of NMDC, commented on the IPO's success: "This IPO isn’t just a financial milestone—it’s a bold statement about who we are and where we’re going. The unprecedented interest we received underscores the market’s trust in NMDC Group’s ability to lead the industries of the future." He emphasized that this marks the beginning of an extraordinary era for NMDC Energy.

Ahmed Al Dhaheri, CEO of NMDC Energy, highlighted the significance of investor interest: "The immense investor interest in our IPO clearly demonstrates that the market understands the value and potential of NMDC Energy." He added that this milestone consolidates UAE's position as a leader in global energy supply.

NMDC Energy is set to hold its Constitutive General Assembly meeting on Monday, 9th September 2024. Trading on ADX is expected to begin on Wednesday, 11th September 2024, subject to necessary conditions and approvals. The shares will trade under the symbol NMDCENR.

First Abu Dhabi Bank PJSC served as lead receiving bank and manager for the IPO. Other receiving banks included Abu Dhabi Commercial Bank PJSC, WIO Bank PJSC, and Al Maryah Community Bank LLC. International Securities LLC acted as placement agent and listing advisor, with Hadef & Partners providing legal advice.

NMDC Energy's Global Reach

With over five decades of global experience, NMDC Energy offers integrated solutions in engineering, procurement, and construction services within the energy sector. The company operates modern manufacturing facilities in Abu Dhabi covering 1.3 million square metres. As of 30th June 2024, its backlog was valued at approximately AED54 billion across various sectors and regions.

The company has a strong international presence in countries such as UAE, Saudi Arabia, Kuwait, India, and Taiwan. To further enhance its capabilities, NMDC Energy is developing a new 400,000-square-metre manufacturing facility at Ras Al Khair Port in Saudi Arabia.

Support from Alpha Dhabi Holding

NMDC Group benefits from backing by Alpha Dhabi Holding—a rapidly growing investment firm in the Middle East and a subsidiary of International Holding Company (IHC). This support strengthens NMDC Group's position as it continues to expand its reach and capabilities globally.

Zaghloul expressed confidence about NMDC Energy's future: "We are at the forefront of a new era... building a legacy that goes beyond profits; it’s about sustainable growth." He believes that NMDC Energy will pioneer solutions that power industries while uplifting communities regionally and globally.

Al Dhaheri outlined plans for growth: "As we prepare for a new phase as an ADX-listed company... targeting organic and inorganic growth... expanding our geographical reach." He aims to create synergies driving transformation across their business operations.

NMDC Group’s success today is attributed to its dedicated shareholders, Board of Directors, and every member contributing to its vision.

With inputs from WAM