National Marine Dredging (ADX:NMDC) is poised to divest a significant 23% stake in its fully owned subsidiary, NMDC Energy, through an initial public offering (IPO) valued at an impressive 3.22 billion Emirati dirhams, marking a notable event in the financial landscape of the United Arab Emirates. With the Securities and Commodities Authority and the Abu Dhabi Securities Exchange having granted their essential approvals, NMDC Group will commence the offering of 1.15 billion shares at 2.8 Emirati dirhams each.
The subscription window opens this Friday and will run until September 4, providing investors with a golden opportunity to partake in this extensive capital raise. Retaining a substantial 77% of NMDC Energy's total share capital, which stands at 2.5 billion dirhams, the group ensures its controlling position within the company.
The nominal value of each share is set at 0.5 dirham, reflecting NMDC Energy's strategic approach to creating a robust investment platform for its stakeholders. This IPO is projected to eclipse the previous fundraising record in 2024, which witnessed Alef Education (ADX:ALEFEDT) raise 1.89 billion dirhams in June. In terms of share distribution, the offering allocates 25 million shares—equivalent to 2.17% of the total—to retail subscribers, underscoring NMDC Group's commitment to enabling individual investors to join in on this exciting venture.
Meanwhile, a significant portion, comprising 982.5 million shares or 85.43%, is earmarked for professional subscribers, ensuring robust institutional support. NMDC Energy, formerly recognized as the National Petroleum Construction, plays a vital role in servicing major players in the energy sector, including Abu Dhabi National Oil Company, known as Adnoc, and Saudi Arabian Oil, widely referred to as Saudi Aramco.
The unit’s anticipated shares are scheduled to commence trading on the Abu Dhabi bourse on September 11, further enhancing its visibility within market circles. Although NMDC Energy's primary operations are based in the UAE, the company extends its reach into neighboring regions, including Saudi Arabia, Kuwait, and Taiwan.
Its procurement and client interface offices are strategically located across various countries, such as Spain, Italy, China, and Malaysia, facilitating a global presence. Furthermore, NMDC Energy boasts an intriguing portfolio that includes a 33% stake in the French scientific engineering firm Principia and an 80% stake in India's ANEWA Engineering, in addition to its full ownership of India's NPCC Engineering.
This diverse portfolio not only highlights its operational depth but also showcases NMDC Group’s commitment to international collaboration and growth. Backed by International Holding's (ADX:IHC) Alpha Dhabi (ADX:ALPHADHABI), NMDC Group has engaged First Abu Dhabi Bank as the lead manager for the IPO, emphasizing the financial institution's pivotal role in navigating this fundraising strategy.
Notably, NMDC Group may consider revising the offering size prior to the closing of the subscription period, pending compliance with relevant legal frameworks and regulatory approvals. As the markets respond to NMDC Group's movements, the company's shares recently experienced a 4% uptick, reflecting positive investor sentiment and anticipation surrounding the upcoming IPO..