UAE’S NMDC IPO oversubscribed by 31 times
The UAE'S NMDC Energy, a provider of engineering, procurement and construction services for offshore and onshore energy clients, and a majority-owned subsidiary of NMDC Group, Wednesday began trading on the Abu Dhabi Securities Exchange (ADX) following an Initial Public Offering (IPO) that was oversubscribed by 31.3 times.
Mohamed Hamad Almehairi, Chairman of NMDC Energy, led the ADX bell-ringing ceremony and officially opened the market to trading of NMDC Energy shares.
The offering of 1.15bn shares in NMDC Energy, representing 23% of the total share capital, was made available to eligible investors at AED2.8 per share. Final allocations were approximately 0.17% to retail investors and 6% to professional investors.
Almehairi said, “NMDC Energy’s listing is an exceptional achievement that will define the pace for the sector’s engineering, procurement and construction business in Abu Dhabi and beyond. To meet the future demands of the energy sector, we will continue to collaborate with value-add partners that share our forward-thinking mentality. Together, we will keep pushing forward with unstoppable momentum.”
Yasser Zaghloul, Group CEO of NMDC, said, “Today is a historic day for NMDC Energy, our group, and the UAE, and it is one that lays the foundation for more great things to come. NMDC IPO opens trading today after drawing AED88BN in investment locally, regionally, and internationally. On behalf of everyone in our group, I would like to thank ADX for the opportunity to make history, and I am proud that today we are a visible example of the Abu Dhabi vision becoming reality.”
International Securities was the placement agent and listing advisor. First Abu Dhabi Bank acted as lead receiving bank and lead manager for the IPO. Abu Dhabi Commercial Bank, WIO Bank, and Al Maryah Community Bank were other receiving banks. Hadef and Partners were the legal advisors.
For 50 years, NMDC Energy has provided integrated engineering, procurement, and construction solutions to the energy sector. The company’s Abu Dhabi manufacturing facilities cover 1.3mn square metres, and it is also developing a new 400,000 square metre manufacturing facility at Ras Al Khair Port in Saudi Arabia.