Abu Dhabi satellite company Yahsat's IPO priced at Dh2.75 a share, plans to list on July 14 on Dh1t ADX
Stock offer was oversubscribed, with Emirates Investment Authority picking up 5%
Dubai: Abu Dhabi’s Mubadala-owned satellite company Yahsat has set a price of Dh2.75 a share for its IPO. The listing is scheduled for July 14, and represents part of a steady pipeline of stock floats that Abu Dhabi entities are planning on. The Abu Dhabi stock market has surged past the Dh1 trillion markin market cap, making it one of the best performing ones in the region.
Based on the Dh2.75 a share pricing, Yahsat – or the Al Yah Satellite Communications Co. – will have a market capitalization of around Dh6.7 billion. In all, 40 per cent of the company is being floated, representing 975.90 million shares. Mamoura Diversified Global Holding, a wholly-owned subsidiary of Mubadala, will remain the majority shareholder with around 60 per cent of Yahsat’s issued share capital.
“The offering was multiple times oversubscribed, with significant demand from qualified institutional and other investors,” the company said in a statement. The offer price was based on the completion of a book-building process.
According to Vijay Valecha, Chief Investment Officer at Century Financial, "The offer price of Yahsat at Dh2.75 makes it the first big listing in the last four years since ADNOC Distribution. The valuation seems fair given the multiples offered for its competitors globally."
Just recently, the International Holding Co. subsidiary Alpha Dhabi, which is primarily into real estate investments and construction, had its listing on Abu Dhabi Securities Exchange (ADX), which was the trigger for the push past Dh1 trillion.
Ali Al Hashemi, CEO of Yahsat, said: “We are delighted that the Offering has been met with substantial investor interest, both locally and internationally. We are dedicated to ensuring we meet and exceed investor expectations as we continue to grow by expanding our geographical reach, while continuously innovating and driving new technologies to meet the local, regional and global demand for reliable satellite connectivity and solutions.”
- The IPO represents the first ever from a Mubadala subsidiary and supported since inception. The listing will create a new platform and route for further value creation.
- Mubadala retains around 60% shareholding in Yahsat and is "fully aligned as the company looks to further grow."
- The transaction has led to "substantial interest and engagement from high quality, global institutional investors allowing for increased Foreign Direct Investment into the UAE, on top of the high demand and interest from local retail investors," according to Yahsat.