NMDC Energy, a unit of the NMDC Group, recently made its debut on the Abu Dhabi Exchange (ADX), with shares falling by around nine percent from their opening price upon listing. However, the closing price of Dh3.02 still represented an eight percent gain on the initial public offering (IPO) price of Dh2.80. The company offered over 1.15 billion shares at Dh2.8 per share, raising around Dh3.22 billion, making it the largest IPO of 2024. The overwhelming demand for the shares, which were oversubscribed by 31.3 times, reflects the confidence of investors in NMDC Energy.
The share price decline was attributed to investor concerns about lowering oil prices and profit-taking activity. Despite this short-term volatility, the long-term outlook for NMDC Energy remains positive. The company provides engineering, procurement, and construction services for the oil and gas industry, safeguarding it from oil price swings. The increasing demand for oil and gas in the Middle East, where it powers 95 percent of electricity generation, contributes to long-term stability in the energy sector, strengthening NMDC Energy’s prospects for growth.
Mohamed Hamad Ghanem Hamad Almehairi, Chairman of NMDC Energy, led the ADX bell ringing ceremony to mark the company’s listing. He highlighted the significance of NMDC Energy’s listing in shaping the future of the sector in Abu Dhabi and beyond. Yasser Zaghloul, Group CEO of NMDC, emphasized the historic day for NMDC Energy, the Group, and the UAE, expressing gratitude for the investment interest generated by the IPO. The successful listing reflects the confidence of the investment community in the company’s business and future growth trajectory.
Ahmed Al Dhaheri, CEO of NMDC Energy, acknowledged the investment community’s confidence in the business and the value they see in NMDC Energy’s past, present, and future. The company’s successful IPO positions it as a key player in the energy sector’s future growth. The involvement of leading institutions such as International Securities LLC, First Abu Dhabi Bank PJSC, Abu Dhabi Commercial Bank PJSC, and others as placement agents and advisors further strengthens NMDC Energy’s market position and growth potential.
With over 50 years of experience in providing integrated engineering, procurement, and construction solutions to the energy sector, NMDC Energy has a solid presence in the industry. The company’s Abu Dhabi manufacturing facilities and the upcoming facility at Ras Al Khair Port in Saudi Arabia showcase its commitment to expanding its operational footprint. With a backlog valued at approximately Dh54 billion, NMDC Energy’s diverse international portfolio positions it for future growth and success in markets including the UAE, Saudi Arabia, Kuwait, India, and Taiwan.
The future outlook for NMDC Energy remains positive, driven by stable demand for domestic oil and gas alongside economic development and population growth in the region. Despite oil’s decreasing proportion to GDP due to diversification efforts, the demand for energy sources like natural gas and petroleum remains high. With increased demand for cooling and desalination services, NMDC Energy is well-positioned to capitalize on these opportunities for growth and expansion in the energy sector.
