UAE’s NMDC Energy to make ADX debut on Wednesday

UAE’s NMDC Energy will ring the bell on the ADX on Wednesday, 11 September, with shares opening at AED 2.80 apiece, according to a statement by the Abu Dhabi Securities Exchange (pdf). The company is wrapping up its IPO which saw its parent company, the National Marine Dredging Company (NMDC), raise AED 3.22 bn after receiving over AED 88 bn in orders from investors at the close of the offering period, according to Wam. The order book was 31x oversubscribed (excluding cornerstone investors).

REMEMBER- NMDC is listing a 23% stake in its engineering, procurement, and construction unit on ADX. Offer shares were priced at AED 2.80 a piece. NMDC’s board approved the IPO last month. There are no details as to where the proceeds of the IPO will be channeled.

Advisors: FAB acted as lead receiving bank and lead manager for the IPO. ADCB, WIO Bank, and Al Maryah Community Bank served as other receiving banks. International Securities acted as the placement agent and listing advisor. Hadef & Partners were the legal advisors.

NMDC has a busy project pipeline: NMDC is currently participating in tenders for projects worth AED 75 bn within and outside the MENA region, its CEO Yasser Zaghloul said in July. It has secured its first project in Europe, and plans to expand its footprint further in the continent and other active global markets, Zaghloul said, without disclosing further details. It was recently awarded a contract worth over USD 200 mn from Adnoc for marine dredging works at the Ruwais liquified natural gas (LNG) project. The project is expected to be completed within 10 months.

There are also plans to boost NMDC Energy’s capacity: NMDC Energy inked a 50-year lease agreement in June to set up a new manufacturing facility in Abu Dhabi’s Khalifa Economic Zone (Kezad). The agreement will see NMDC Energy invest some AED 367 mn (USD 100 mn) into the facility, which is expected to create 3k new jobs. The 224k sqm facility will offer top-tier services such as engineering, procurement, project management, fabrication, installation, and commissioning to the local oil and gas sector.

About NMDC Energy: The firm, formerly known as National Petroleum Construction Company, was founded by Adnoc in 1973, according to their website. It specializes in offshore construction, operating in the oil, gas, and energy industry.