NMDC Energy’s $877m IPO oversubscribed 31.3 times

Image credit: NMDC Group

NMDC Group said on Thursday that the initial public offering (IPO) of its subsidiary, NMDC Energy, has attracted $23.9bn (Dhs88bn) in investor orders, as investors rushed to snap up shares in what is expected to be the UAE’s biggest listing this year.

NMDC Energy is offering 1.15 billion shares at Dhs2.80 a piece to raise $877m. The construction and dredging services firm said the offer was 31.3 covered by local, regional, and international investors.

“With this step, 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. The future will see NMDC Energy pioneering solutions that power industries and inspire and uplift communities both regionally and globally,” said Yasser Zaghloul, group CEO of NMDC.

The IPO drew Al Ataa Investment as a cornerstone investor, which agreed to buy 142.5 million shares, representing approximately 12.39 per cent of the offering. First, Abu Dhabi Bank was the lead manager for the sale, with Abu Dhabi Commercial Bank, Wio Bank, and Al Maryah Community Bank acting as receiving banks.

NMDC Energy is set to debut on the Abu Dhabi Securities Exchange on September 11, 2024.

Founded in 1973, the company has executed more than 1,200 projects, including approximately 1,360 installed structures, 8,000 km of laid pipelines, and 2,000 km of marine cables.

NMDC Group previously invested in the IPOs of ADNOC Gas and ADNOC L&S. The Alpha Dhabi-backed company has won contracts from ADNOC Group to work on several projects this year, such as a $200m dredging contract for a natural gas export facility.

The group’s half-year net profit rose by 66 per cent to Dhs1.46bn compared to Dhs881m in the same period a year ago, while its revenue jumped 79 per cent to Dhs12.1bn. Its assets in the January-June period increased by Dhs7.7bn to Dhs28.5bn compared to Dhs20.8bn for the corresponding period in 2023.