NMDC Group, a provider of construction and dredging services mainly to the energy industry, is planning what would be the United Arab Emirates’ biggest initial public offering this year.
The company received approval from the UAE securities regulator to sell 3.22 billion dirhams ($877 million) of shares in its in NMDC Energy unit, according to a statement. NMDC Group will offer 1.15 billion shares of the business at 2.80 dirhams a piece,it said Wednesday.
The sale would eclipse the $515-million share offering in Alef Education Holding Plc, which is so far the country’s biggest IPO this year, and will also be the biggest listing in the UAE since Pure Health Holding raised $986 million in December. NMDC Energy will be valued at $3.81 billion.
NMDC has this year won contracts from the UAE’s biggest energy company Abu Dhabi National Oil Co. to work on projects such as a $200 million dredging contract for a natural gas export facility. The company has previously invested in the IPOs of Adnoc’s gas and logistics units.
The subscription period for the sale will open on Aug. 30 and run through Sept. 4. First Abu Dhabi Bank PJSC is the lead manager for the sale.
Source: Bloomberg