NMDC Group's IPO of NMDC Energy Oversubscribed 31.3 Times, Raising AED 88 Billion in Gross Demand

NMDC Group, a leading provider of engineering, procurement, construction, and marine dredging services, has successfully closed the Initial Public Offering (IPO) of its subsidiary, NMDC Energy, with overwhelming investor demand. The IPO was oversubscribed by 31.3 times, excluding cornerstone investors, generating total gross demand of AED 88 billion.

The offering of 1.15 billion shares, representing 23% of NMDC Energy’s total share capital, was priced at AED 2.8 per share. The IPO saw exceptional interest across all investor segments, with the Retail tranche oversubscribed by an astounding 600 times and the Professional tranche by 16.7 times. The offering will raise AED 3.22 billion for NMDC Group.

Yasser Zaghloul, Group CEO of NMDC, commented on the milestone: “This IPO isn’t just a financial achievement—it’s a bold statement about who we are and where we’re headed. The overwhelming interest demonstrates the market’s trust in NMDC Group’s ability to lead future industries. We’re entering a new era, pioneering sustainable growth and innovation in the energy sector.”

Ahmed Al Dhaheri, CEO of NMDC Energy, added: “The market’s confidence in our IPO speaks to NMDC Energy’s strong value proposition. This move strengthens the UAE’s position as a global leader in energy supply. As we transition into an ADX-listed company, we are poised for both organic and inorganic growth, driving transformation and innovation.”

The Constitutive General Assembly meeting for NMDC Energy is scheduled for September 9, 2024, with trading on the Abu Dhabi Securities Exchange (ADX) expected to begin on September 11, 2024, under the symbol "NMDCENR."

First Abu Dhabi Bank acted as the lead receiving bank and manager for the IPO, with other banks including Abu Dhabi Commercial Bank, WIO Bank, and Al Maryah Community Bank also involved. International Securities LLC served as the placement agent and listing advisor.

NMDC Energy, with over 50 years of global experience, is a leader in the energy sector, providing integrated engineering and construction solutions. The company is expanding its manufacturing capabilities, with plans for a new facility at Ras Al Khair Port in Saudi Arabia.

Backed by Alpha Dhabi Holding, NMDC Group remains at the forefront of delivering energy solutions worldwide.