ALL you Need to Know ADNH Catering IPO Frequently Asked Questions FAQ part2

ALL you Need to Know: ADNH Catering IPO - Frequently Asked Questions (FAQ) part2
Frequently Asked Questions
6.What is ADNH Catering’s financial profile?
Across the financial years ended 30 September 2022 and 2023 and the nine-month period ended 30 June 2024, the Company’s financial performance was robust, being supported by scaled operations and resilient performance.
The Company’s robust financial performance was further supported by strong margins, driven by proactive business selection, wherein the Company moved away from less attractive contracts if their projected future profitability no longer aligns with the Company’s objectives, and a capital expenditure light investment model that can be tailored to the specific needs of individual clients.
The Company’s maintained double digit EBITDA margins of 14.8%, 13.9% and 13.5% across the years ended 30 September 2022 and 2023 and the nine-month period ended 30 June 2024, respectively.
7.What are the Reserved Shares? Who is eligible to subscribe to these?
Up to 10% of the Reserved Shares will be made available for allocation to existing ADNH Eligible Shareholders who apply in either the First Tranche or the Second Tranche only, in priority to other applicants.
8.What is ADNH Catering’s dividend policy?
The Board of Directors of ADNH Catering has adopted a dividend policy for the Company which reflects the Company’s expectations of strong earnings and cash flow, whilst appropriately balancing the need of the Company to retain resources for its growth and sustainability.
To ensure the Company is well capitalised ahead of the Offering, Abu Dhabi National Hotels Company PJSC (the “Selling Shareholder") did not take a dividend from ADNH Catering, or any of its subsidiaries, for the year ending 30 September 2024. The Selling Shareholder believes that both existing and new shareholders should benefit from a dividend from the Company for the financial year ending 31 December 2024. The Company, therefore, intends to pay a cash dividend of AED 60 million in April 2025.For the performance in the financial year ending 31 December 2025, the Company intends to pay a total cash dividend of AED 180 million, split equally between the first half of the financial year (which is expected to be paid in October 2025) and the second half of the financial year (which is expected to be paid in April 2026).
For the performance in the financial year ending 31 December 2026, the Company intends to increase the previous year’s dividend by a minimum of 5% to reflect further confidence in the Company’s earnings and cashflow generation potential. The cash dividend will be split equally between the first half of the financial year (which is expected to be paid in October 2026) and the second half of the financial year (which is expected to be paid in April 2027).
9.Is this a secondary or primary offering?
The Offering is 100% secondary offering, meaning all shares being offered are existing shares (not new shares) sold by the Selling Shareholder. A total of 900,000,000 shares, equivalent to 40% of the Company’s share capital, will be offered for sale.
The Company will not receive any proceeds from the Offering other than reimbursement from the Selling Shareholder for any expenses relating to the Offering.
The Selling Shareholder reserves the right to amend the size of the Offering and the size of any Tranche at any time prior to the end of the subscription period at its sole discretion, subject to the applicable laws of the UAE and the approval of the Securities and Commodities Authority in the UAE (“SCA” or the “Authority”).
10.How does the subscription process work?
Subscribers to the First Tranche (Individual Investors) and the Third Tranche (Eligible Employees) may submit one subscription application only:
(i) in the case of a subscription application by a natural person, in his or her personal name (unless he or she is acting as a representative for another Subscriber, in which case the subscription application will be submitted in the name of such Subscriber); or
(ii) in the case of a subscription application by a corporate entity, in its corporate name.
Subscribers must complete all of the relevant fields in the subscription application along with all required documents and submit it to any Receiving Bank together with the subscription amount during the Offer Period for the First Tranche and the Third Tranche.
The subscription application should only be fully completed after reviewing the UAE Prospectus and the Company’s Articles of Association. The subscription application then needs to be submitted to any of the Receiving Banks’ branches mentioned herein or through electronic channels.