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 attracting foreign investment.

Abu Dhabi, the Gulf state’s oil powerhouse, has been at the forefront of these efforts, successfully attracting numerous financial institutions and ramping up investments in tourism. The emirate aims to welcome 39.3 million tourists by 2030, up from 24 million in 2023. Additionally, Abu Dhabi plans to increase hotel room availability to 52,000 by 2030, compared to 34,000 in 2022.

However, Cowley also emphasized the company’s broader ambitions. “We are looking to grow in sectors beyond tourism, including healthcare and education, with Saudi Arabia presenting particularly exciting opportunities for expansion,” he added in an interview with Reuters.

The post Abu Dhabi National Hotels Prepares 40% Stake IPO For Catering Business Amid Ambitious UAE And Saudi Growth Plans appeared first on Travel And Tour World.