NMDC Energy’s IPO oversubscribed 14 times

The initial public offering (IPO) of NMDC Energy, the wholly owned subsidiary of NMDC Group, has been oversubscribed 14 times by day four of its subscription period.

The subscription commenced on August 30 and will close on September 4.

Shares of NMDC Group, which trades on the Abu Dhabi Securities Exchange (ADX), jumped more than 9 percent on Monday, their highest level since March.

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The engineering, procurement and construction (EPC) contractor for energy projects expects to raise AED3.22 billion ($877 million) from the listing.

The company is offering  1.15 billion shares at AED2.8 per share, with shares likely to begin trading on ADX on September 11.

NMDC Energy has a share capital of AED2.5 billion divided into five billion shares at a nominal value of AED0.5 each.

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The EPC contractor has executed more than 1,200 projects and has a backlog of AED54 billion as of June 2024.

The company intends to expand across its existing markets through acquisitions, with plans for Africa, India and Southeast Asia.

First Abu Dhabi Bank is the lead receiving bank and lead manager for the IPO. Other receiving banks are Abu Dhabi Commercial Bank, WIO Bank and Al Maryah Community Bank.

The placement agent for the IPO and listing advisor is International Securities.