NMDC Energy's IPO oversubscribed 31 times in lead-up to UAE's biggest listing of 2024

Abu Dhabi contractor will make its debut on the emirate's stock market on September 11

Abu Dhabi's NMDC Group says it has eyes on all active markets as it charts its global expansion. Photo: NMDC

NMDC Energy, a unit of Abu Dhabi contractor National Marine Dredging Company, has closed its initial public offering which was oversubscribed by more than 31 times, setting the stage for what is expected to be the UAE's biggest listing of 2024.

The IPO generated total gross demand of about Dh88 billion ($24 billion), met with "outstanding demand" and became oversubscribed within hours of its launch on August 30, NMDC Energy said in a statement on Thursday.

NMDC Energy is expected to raise Dh3.22 billion by offering 1.15 billion shares, which is equivalent to 23 per cent of its total share capital, to eligible investors, at Dh2.8 per share.

The company will make its debut on the Abu Dhabi Securities Exchange on September 11, after a constitutive general assembly meeting on September 9.

That would surpass the $515 million raised by Alef Education in June, but would be smaller than the healthcare operator Pure Health’s $986 million listing in December last year.

The listing represents the continuing momentum in the UAE's IPO market and "trust" in the company, said NMDC group chief executive Yasser Zaghloul.

“This IPO isn’t just a financial milestone ... we are building a legacy that goes beyond profits; it’s about sustainable growth, technological innovation and pushing the boundaries of what’s possible in the energy sector," he said.

For its future road map, NMDC Energy is looking at "pioneering solutions that power industries" to assist communities both regionally and globally, Mr Zaghloul said.

The UAE, as well as the other members of the six-member economic bloc of GCC, have seen a consistent rise in IPO activity over the past two years.

A growing number of companies have opted to list their shares on equity markets in the UAE this year amid continued economic momentum in the Arab world’s second-largest economy.

Companies in the UAE raised $890 million through IPOs in the second quarter of this year alone.

The list of potential IPOs is also growing. In June, the UAE-based hospital operator NMC Health appointed Rothschild as a financial adviser to help it explore strategic options for its shareholders, including an IPO.

Abu Dhabi’s LuLu Group International is also planning to launch its IPO this year and list its shares on the ADX, the region's second-largest bourse by market capitalisation.

Last week, Delivery Hero, the Germany-based food delivery platform, is preparing to list shares of its UAE subsidiary Talabat on the Dubai bourse.

Etihad Airways, the UAE's flag carrier, is also preparing for a potential listing, which would be a first for a major Gulf airline, as it pursues an ambitious growth strategy between now and 2030, its chief executive Antonoaldo Neves told The National in March.

Meanwhile, NMDC Group has “eyes on all active markets” as it charts its global expansion, Mr Zaghloul had previously told The National.

It is also open to taking up more projects globally if they fit with the company’s strategy as it banks on its "great infrastructure" to help it gear up for more expansion not limited to any market in the world.

“The immense investor interest in our IPO clearly demonstrates that the market understands the value and potential of NMDC Energy. Additionally, this IPO consolidates the UAE’s position as leader in supplying the world’s energy needs," said Ahmed Al Dhaheri, chief executive of NMDC Energy.

The company will use the ADX listing to build organic and inorganic growth, expand its geographical reach, "as well as creating synergies that drive transformation and innovation across the business”, he added.

First Abu Dhabi Bank acted as the lead receiving bank and lead manager for NMDC Energy's IPO, while Abu Dhabi Commercial Bank, Wio Bank and Al Maryah Community Bank were the receiving banks.