Tuesday, October 1, 2024 Abu Dhabi National Hotels Prepares to Sell 40% Stake in Catering Arm via IPO Amid Regional Economic Growth Abu Dhabi National Hotels (ADNH) announced its plans to sell a 40% stake in its catering business through an initial public offering (IPO) on the local stock exchange, tapping into the region’s booming economic growth. The move is set to expand the company’s reach, positioning it to capitalize on growing investor interest. ADNH Catering, which provides food services, cleaning, manpower supply, and support services, operates primarily in the UAE, employing more than 18,000 staff.
Additionally, the company has a joint venture in Saudi Arabia, where it employs close to 1,000 people. Investor roadshows are scheduled for next week, giving potential stakeholders a closer look at the business and its expansion plans. The IPO price will be set through a book-building process running from October 7 to 15, with the company anticipating a listing as soon as November.
The entire offering of 900 million shares will be sold by ADNH, the parent company that also owns several prominent hotels, including the Ritz Carlton and Park Hyatt in Abu Dhabi, and the JW Marriott and Sofitel in Dubai’s Marina and Jumeirah Beach areas. The Gulf region has experienced a surge in IPOs, particularly in Saudi Arabia and the UAE, as governments aim to diversify their economies beyond oil. As part of these reforms, there is an emphasis on expanding capital markets and attrac.
