NMDC Energy (Formerly NPCC) was established in 1973 and is a fully owned subsidiary (pre-IPO) of NMDC Group. NMDC Energy is a world-class Engineering, Procurement and Construction Company that provides total EPC solutions to both the Offshore and Onshore Oil & Gas sectors. The company provides engineering, procurement, project management, fabrication, installation and commissioning to project owners and operators. The company has executed over 1200+ projects, comprising 1,360 installed structures, c.8,000 km of laid pipelines both onshore and offshore, c. 2000km of marine cables, and four construction yards in the GCC.
Since inception, NMDC Energy has played a pivotal role in the economic success of the UAE. From the earliest days of UAE’s Oil & Gas journey, NMDC Energy has been at the forefront of creating a globally integrated energy ecosystem that is today among the world’s most advanced.
The company has longstanding strategic partnerships with key industry giants, including Saudi Aramco, ADNOC, Borouge, Saipem and Tehnicas Reunidas, and has a project order backlog of AED54bn, about 5.1x of the last twelve-month revenues, offering high revenue visibility. The company is well positioned to benefit from the growing energy sector in the GCC, with the expected development of high-potential unconventional oil & gas resources in the UAE, multiple growth projects by key partner group ADNOC, and continued population growth in the GCC region resulting in the increase in the demand of energy.
The total number of shares being offered in the IPO are 1.15bn shares (constituting 23% of the post-IPO share capital of the company) at a fixed price of AED2.80/share. The selling shareholder is NMDC Group. The total IPO size is AED3.22bn which the selling shareholder would receive upon the successful completion of the IPO.
The IPO offers an attractive opportunity to invest in UAE’s premium EPC player at attractive valuations along with a committed dividend of AED700mn per year between FY24-26, implying a dividend yield of 5.0% at IPO price.
