{"id":95345,"date":"2024-09-02T00:00:00","date_gmt":"2024-09-02T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/nmdc-energy-ipo-already-oversubscribed\/"},"modified":"2024-09-02T00:00:00","modified_gmt":"2024-09-02T00:00:00","slug":"nmdc-energy-ipo-already-oversubscribed","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/09\/02\/nmdc-energy-ipo-already-oversubscribed\/","title":{"rendered":"NMDC Energy IPO already oversubscribed"},"content":{"rendered":"

Good morning, friends<\/strong>, and welcome to the first business day of September. We\u2019re back after a fairly quiet weekend, but we come bearing news on the IPO and M&A fronts.<\/p>\n

In a nutshell: NMDC\u2019s IPO<\/strong> seems to be headed for a strong start and Brookfield Asset Management is courting ADQ <\/strong>to join its bid to acquire Spanish biopharma outfit Grifols<\/strong>. <\/p>\n

MEANWHILE-<\/strong> A consortium led by Masdar <\/strong>has lined up a USD 900 bn investment in solar <\/strong>plants in Egypt<\/strong> and Adani Ports <\/strong>has acquired an 80% stake in Dubai\u2019s Astro Offshore. <\/p>\n

^^ We have the rundown on these stories and more below in this morning\u2019s news well. <\/p>\n

IN THE MARKETS-<\/p>\n

#1- The order book for the National Marine Dredging Company Energy\u2019s <\/strong>(<\/strong>NMDC Energy<\/a><\/strong>) ADX IPO <\/strong>was 7x oversubscribed <\/strong>as of yesterday, according to a statement<\/a>. The offering saw \u201cstrong investor interest\u201d despite the second day of the subscription falling on a weekend, the company said. Investors have until Wednesday<\/strong>, 4 September, to get their orders in. <\/p>\n

BACKGROUND- <\/strong>NMDC is listing a 23% stake<\/a> in its engineering, procurement and construction unit, NMDC Energy, on the ADX. The transaction is due to wrap up on 11 September. Offer shares are priced at AED 2.80 apiece, valuing the transaction at AED 3.22 bn. NMDC\u2019s board approved<\/a> the IPO last month.<\/p>\n

ADVISORS- <\/strong>First Abu Dhabi Bank is lead receiving bank and lead manager, with Abu Dhabi Commercial Bank, WIO Bank, and Al Maryah Community Bank also acting as receiving banks. International Securities is lead placement, while Hadef & Partners is legal counsel and Ernst & Young has audit duties.<\/p>\n

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#2- Could ADQ join Brookfield\u2019s bid to acquire Spain\u2019s Grifols? <\/strong>Canada\u2019s Brookfield Asset Management held discussions with Abu Dhabi wealth fund ADQ and Singapore\u2019s GIC, among other sovereign funds, to potentially join its bid to acquire Spanish blood-plasma company Grifols<\/a>, Bloomberg<\/a> reports, citing people it says are familiar with the matter. <\/p>\n

Brookfield and the Grifols family<\/strong> aim to take the company private<\/strong>, but they have not made a formal offer to Grifols' board pending due diligence. The offer could value the company at around USD 8.9 bn, the business information service writes.<\/p>\n

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#3- The Bank of Sharjah plans to auction five-year USD-denominated bonds, <\/strong>with banks already hired to manage the issuance, Reuters<\/a> reports, citing a transaction-related document. The issuance would fall under the lender\u2019s USD 2.5 bn euro medium-term note program. Investor meetings started on Friday. No details were given on the value of the bonds.<\/p>\n

ADVISORS- Our friends at Mashreq are joint lead managers and bookrunners<\/strong> along with First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait, Bank ABC, Citi, Doha Bank, Emirates NBD Capital, Kamco Invest, QNB Capital, and Standard Chartered.<\/p>\n

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DATA POINTS-<\/p>\n

#1- The federal e-commerce market is expected to be worth AED 40.4 bn this year<\/strong> and is on track to grow to AED 69.7 bn by 2029, Al Etihad<\/a> reports, citing a report<\/a> by Mordor Intelligence, good for a compound annual growth rate of 11.5%.<\/p>\n

Our collective sweet tooth is driving growth: <\/strong>Food \u2014 particularly sweets, sugar, chocolate, and pastries \u2014 is the big growth drive alongside consumer electronics (including smartphones, laptops, and tablets) as well as home electronics. <\/p>\n

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#2- The total number of private-sector companies operating in the UAE stood at 526k at <\/strong>the end of 1H 2024<\/strong>, a 16% rise over the comparable figure for the end of 1H 2023, Alkhaleej reports<\/a>, citing data from the Human Resources and Emiratisation Ministry. <\/p>\n

#3- Jebel Ali Port set a new record for monthly container handling capacity in July 2024<\/strong>, with 1.4 mn twenty foot equivalent units, according to a statement<\/a>, beating the previous record set in 2015. The growth came on the back of a robust 1H 2024 performance, as the port saw a 3.9% y-o-y increase to 7.3 mn TEUs, driven by high inbound cargo from key Asian markets, including China, Japan, and South Korea. <\/p>\n

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WORTH READING-<\/p>\n

#1- The Financial Times is out with a long take on Sheikhs Hamdan and Maktoum<\/strong>, the sons of Dubai ruler and United Arab Emirates prime minister Sheikh Mohammed bin Rashid Al-Maktoum, highlighting their roles in both stewardship of the economy and business climate and raising Dubai\u2019s global profile. You can read the full story here<\/a>. <\/p>\n

#2- UAE tops Mena in soft power:<\/strong> The UAE ranked first in \u201csoft power\u201d in the Mena region and tenth globally in the 2024 according to the Brand Finance Soft Power Index<\/a>(pdf)<\/a>. <\/p>\n

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PUBLIC SERVICE ANNOUNCEMENTS-<\/p>\n

#1- A visa overstay amnesty program kicked off yesterday<\/strong>, giving residents until 1 November to get their paperwork in order or to leave the country without finds, according to a decision<\/a> issued by the Federal Authority for Identity, Citizenship, Customs, and Port Security last month<\/a>. Some embassies \u2014 including those of Pakistan and India \u2014 are keeping their doors open on weekends to assist with passport renewals and other documentation needs, the National<\/a> reports. <\/p>\n

#2- <\/strong>Employers who violate the new labor law<\/strong>, which entered into force on 31 August, <\/strong>could face fines between AED 100k and AED 1 mn. <\/strong>Violations of the labor law, which the government introduced last month<\/a>, include employing staff without a permit, misusing work permits, shutting down a business without settling employees\u2019 dues, hiring minors, or faking the employment of Emiratis to comply with Emiratization quotas.<\/p>\n

#3- Dubai inaugurates two bridges on Al Khail Road: <\/strong>Dubai\u2019s Roads and Transport Authority (RTA) opened two bridges on Al Khail Road at Zaa\u2019beel and Al Quoz 1, according to the Dubai Government Media Office<\/a>. The two bridges have a cumulative capacity of around 8k vehicles per hour.<\/p>\n

#4- You\u2019ll be paying less at the pump this month:<\/strong> The Fuel Price Committee decreased fuel prices for September by around 6% after a 2% price hike last month<\/a>, Wam<\/a> reports. The breakdown<\/strong> for one liter:<\/p>\n