UAE’s Emirates Food Industries to undertake secondary listing on ADX

Abu Dhabi-headquartered food, dairy and agriculture company Emirates Food Industries, is undertaking a secondary listing of its shares on Abu Dhabi Securities Exchange (ADX).

The company, owned by National Holding, is working on expanding its operations as it aims to support the UAE’s food security programme, a statement said.

Wasfi Kaso, chief executive officer of Emirates Food Industries, said: “This listing is an integral and strategic step towards our ambitious five-year plan of expansion and capability development. It would make sense to look to the UAE’s capital markets to support us in our growth plans as we look to solidify our role as a partner in the UAE’s food security agenda.”

Emirates Food Industries has manufacturing, logistics and distribution operations across the UAE, with diversified interests including agriculture, animal feed and dairy.

EFI is currently in the final stages of completing their dairy factory in Al Ain, operated by National Dairy, a subsidy of EFI. The factory, which will be operational by first quarter of 2022, will be dedicated to the production and processing of dairy products for the UAE and GCC markets.

The Emirates Food Industries group includes National Feed and Flour Production & Marketing Company (NFFPM), Coast Flour Mills (CFM), National Dairy Factory (ND), National Dairy Farm (NDF), Masaken Dairy Farm (MDF), and National Bags Factory (NBF)·

This IPO is the latest in a series of listings in the capital. Fertiglobe Holdings, the fertilizer maker backed by US hedge fund investor Jeff Ubben and a Singapore wealth fund, jumped 20 per cent on its trading debut last week following a $795m initial public offering.

Read: Fertiglobe surges 20% in Abu Dhabi debut after $795m IPO

Earlier this month, ADNOC Drilling Company was also listed on the ADX, while ADQ intends to proceed with listing shares of the Abu Dhabi Ports Company as well.

Read: ADQ announces intent to list Abu Dhabi Ports on ADX

In July, ADX said that it would cut in half its trading commission and extend trading hours in an attempt to boost liquidity in the market.

Read: Abu Dhabi Exchange cuts trading fees, extends trading hours

Trading fees will be reduced to 0.025 per cent from 0.05 per cent starting from September 1.

The Abu Dhabi IPO Fund was also launched in October to help private companies grow and support them through the IPO process by providing liquidity and promoting equity research.

Read: New Dhs5bn Abu Dhabi IPO fund launched to support SMEs