Abu Dhabi National Hotels has announced that it will be proceeding with an IPO for its catering business, ADNH Catering, offering 900 million shares representing 40 percent of its share capital on the Abu Dhabi Securities Exchange (ADX). The offer price will be disclosed when subscriptions open from October 7-14 for UAE retail investors and eligible employees, and on October 15 for professional investors. The company was founded in 1976 and owns hotels like the Ritz Carlton and Park Hyatt in Abu Dhabi, with shareholders including Mubadala and National Holding. The IPO aims to deepen capital markets and attract investment in the UAE.
All shares being offered in the IPO are existing shares held by Abu Dhabi National Hotels Company PJSC, with up to 10 percent of offer shares available to existing shareholders of ADNH Group. ADNH Catering operates in Saudi Arabia and the UAE, providing food and support services. The unit reported revenues of 1.8 billion dirhams ($490.12 million) and an operating profit margin of around 11 percent last year. The IPO announcement comes as the UAE witnesses a surge in new listings, with 23 IPOs in the first half of the year raising $3.6 billion for companies in the Middle East and North Africa.
Khalaf Sultan Al Dhaheri, Chairman of ADNH Catering, expressed excitement about floating a 40 percent equity stake in ADNH Catering, highlighting the unit’s long-standing partnership with leading institutions and companies in the UAE and Saudi Arabia. The move is made possible by the company’s dedicated employees and the support of its ambitious shareholder. With strong market opportunities and a growth strategy focused on creating a leading GCC platform, ADNH Catering offers investors a compelling opportunity. This reflects the UAE government’s efforts to deepen capital markets and attract investment.
Other upcoming IPOs in the region include Saudi healthcare provider Fakeeh Care Group and UAE supermarket franchisee Spinneys, while Lulu plans to go public later this year. Delivery Hero is preparing to IPO its Emirati subsidiary Talabat on the Dubai stock exchange in the fourth quarter. Etihad Airways is also preparing for an IPO, with reports suggesting it may debut no sooner than 2025. This potential IPO would mark the first major Gulf airline going public as Abu Dhabi seeks to establish itself as a global travel hub. The UAE’s capital city is ramping up efforts to attract investment and promote economic growth through capital market activities.
