Abu Dhabi National Hotels could raise as much 864 million dirhams ($235 million) from the initial public offering of its catering business after the unit disclosed an indicative price range on Monday.
The price range was set at 0.91 dirhams to 0.96 dirhams per share, ADNH, which is selling 40% of the unit, said in a statement. That implies an equity value for the entire unit of 2.05 billion to 2.16 billion dirhams.
Admission of the shares to trading on the Abu Dhabi bourse is expected to take place on Oct. 23, ADNH said.
ADNH Catering, which provides food, cleaning, support services and personnel, operates in the United Arab Emirates with over 18,000 employees and via a joint venture in Saudi Arabia where it employs almost 1,000 people.
The Gulf has seen a flurry of IPOs in recent years as governments in countries such as Saudi Arabia and the UAE try to diversify their economies with reform plans that include deepening capital markets to attract investment.
Citi and FAB were appointed as joint global coordinators and joint bookrunners for the IPO, while ENBD and ADCB were named joint bookrunners.
