Page 58 - SALIK PR REPORT SEPTEMBER 2024

The parent company ADNH reported net profit of Dh1.15 billion for the first
six months of 2024, trading on Abu Dhabi’s efforts to widen its attractions as a
destination for tourism, hosting conferences and high-wattage entertainment
and sporting events, and, of course, to do business.
A SIZEABLE WORKFORCE
ADNH Catering has one of the bigger workforces in the country, totaling more
than 17,000. In terms of staff turnover, the company averaged 15% in the first
six months of 2024, considerably lower than the 40% average in the food and
cleaning service sector.
These taken together should add up to something significant for ADNH
Catering's medium-term prospects, which is what the promoters expect
potential investors in the IPO to take note of. The entity also has standalone
operations in Dubai and Sharjah.
So far in 2024, UAE investors had welcomed IPOs from Parkin and Spinneys
in Dubai, while Alef Education and, more recently, NMDC Energy came to
market on the ADX. The level of subscription activity was intense and ADNC
Catering will have every reason to believe it can do the same once October 7
comes by.
"IPOs continue to do well in the UAE this year, led by NMDC Energy and
Parkin," said Sameer Lakhani, Managing Director at GCP. "Moreover there
has been a steady build up in demand for recently listed companies such as
ADNOC Drilling, Salik, ADNOC Logistics, ADNOC Gas, etc.
"The percentage of divestment - at 40 per cent - of ADNH Catering suggests a
response for greater secondary market activity as well as corporate activism. It
marks another milestone in the growing maturity of the local capital markets
as issuers respond to rising investor demand, domestically as well as
internationally."

Adding to the IPO pipeline

The GCC markets and investors had seen heavy IPO activity - 26 of them -
through the first-half of the year, and now, Q4-24 is shaping up to be another
bonanza. The net proceeds from the H1-24 offers totaled $5 billion.
"The UAE represented 44 per cent of that, or $2.2 billion (Dh8 billion),"
said Amer Halawi, Head of Research, Al Ramz Capital. "This compares to $3.6
billion locally in 2023 and $11.1 billion in 2022. This year is therefore set to
equal or exceed the last but should remain behind the record-breaking 2022.
"The pipeline remains healthy with both public and private companies
expected to hit the market. Over-subscription levels to these offerings have
been impressive and suggest that liquidity remains abundant. All in all, we
expect the IPO bonanza to continue in the UAE and the wider GCC..."

GULFNEWS: ADNH Catering to be UAE's first IPO for action packed Q4-2024