Abu Dhabi National Hotels (ADNH Group) is planning to sell a 40% stake in its catering business through an initial public offering (IPO) on the Abu Dhabi bourse. This move adds to the surge of share sales in the Middle East. ADNH Catering, which has been a key player in the UAE’s hospitality sector since 1979, is offering 9 billion shares. Citigroup and First Abu Dhabi Bank have been appointed as joint global coordinators and bookrunners, while Emirates NBD Capital and Abu Dhabi Commercial Bank are serving as joint bookrunners. The offering is aimed at institutional and retail investors from October 7 to 15.

ADNH Catering’s revenues reached $444 million (Dhs1.63bn) in 2023, with a profit of Dhs422.5m. The company operates across the UAE and Saudi Arabia through joint ventures with Compass Group and Al-Rushaid Petroleum. To attract investors, ADNH Catering plans to pay a performance-linked dividend of Dhs180m starting in 2025, with a commitment to increase dividends by at least 5% in 2026. This listing comes amid a continued wave of IPO activity across the GCC, as regional governments push to diversify their economies away from oil by privatizing state-owned enterprises.