Mubadala's Yahsat aims to raise up to Dh3 billion in Abu Dhabi IPO
This will be the first major listing on the Abu Dhabi bourse after ADNOC distribution
Dubai: Abu Dhabi sovereign investor Mubadala's satellite company Yahsat has set an indicative price range for its initial public offering which shows it could raise up to Dh2.976 billion ($810 million) in the IPO.
The offer price range has been set at Dh2.55 to Dh3.05 per share.The final offer price for the shares is expected to be announced on July 9 2021.
The share sale opens Sunday, June 27 and will continue until Tuesday, July 6, 2021 for individuals and other investors in the UAE and until Thursday, July 8, 2021 for qualified institutional and other investors.
Opportunity for UAE investors
The Offering creates an opportunity for investors to participate in the potential strategic growth of a leading integrated satellite communication services provider.
Mubadala will remain a majority shareholder following the Offering of at least 30 per cent and up to 40 per cent of Yahsat’s issued share capital, all of which is currently held by Mamoura Diversified Global Holding PJSC, a wholly-owned subsidiary of Mubadala Investment Company (Mubadala).
It is expected that the Shares will be admitted to trading on the Abu Dhabi Securities Exchange (ADX) on July 2021, subject to market conditions and obtaining relevant regulatory approvals.
“We believe that we have established a strong and proven operational and financial track record over the years which, coupled with the ever-growing adoption of technological solutions and promising prospects of the space industry in Abu Dhabi and the UAE more broadly, provides a compelling proposition for potential investors. We look forward to their participation in Yahsat’s growth story,” Ali Al Hashemi, Chief Executive Officer of Yahsat said in a statement.
Yahsat plans to sell a minimum of 731.9 million shares to a maximum of 975.9 million shares, indicating it may raise at least Dh2.23 billion to a maximum of Dh2.976 billion.
Established in 2007, Yahsat is one of the largest providers of satellite communications services in the world in terms of annual revenues, Mubadala has said. It also owns satellite phone operator Thuraya.
First Abu Dhabi Bank , Merrill Lynch International and Morgan Stanley & Co. International plc have been appointed as Joint Global Coordinators and Abu Dhabi Commercial Bank, EFG Hermes UAE Limited and HSBC Bank Middle East Limited have been appointed as Joint Bookrunners. First Abu Dhabi Bank has been appointed as the lead receiving bank and Abu Dhabi Commercial Bank has been appointed as a Receiving Bank.