Abu Dhabi’s Mubadala-owned entity launches UAE telco du stake sale: How to subscribe

Abu Dhabi: Abu Dhabi’s Mubadala Investment Co. is selling shares in telecom operator du in a secondary offering that could draw as much as $920 million. The shares are listed on the Dubai Financial Market (DFM).

Mubadala, which owns roughly 10 per cent of du through its Mamoura Diversified Global Holding unit, is offering a 7.55 per cent stake or 342 million shares in du at between Dh9 and Dh9.90 each, according to advertisements in local media. At the higher end of the range, it could offer as much as Dh3.39 billion.

du, officially known as Emirates Integrated Telecommunications Company PJSC, closed its stock at Dh9.90 on Thursday, extending its year-to-date gain to over 32 per cent, despite a recent dip over the past week, according to Bloomberg reports.

Mubadala previously cut its du stake in 2019, when it sold 10 per cent – then worth about $630 million- to the Emirates Investment Authority.

For the year ended December 31, 2024, du’s revenue was Dh14.6 billion, with a profit of Dh2.4 billion and EBITDA of Dh6.46 billion. For the six months ended June 30, the Group's total revenue was Dh 7.75 billion, with a net profit of Dh 1.4 billion and EBITDA of Dh 3.6 billion.

The share sale will run from September 8 to September 12. The offering is divided into two parts: Retail investors, who will be allocated 5 per cent of the shares. The minimum application is Dh5,000, and each retail subscriber is guaranteed a minimum of up to 500 shares. Institutional investors will receive 95 per cent of the shares. The minimum subscription for this tranche is set at Dh5 million.

A separate 5 per cent of the shares is also being offered to the Emirates Investment Authority (EIA).

Investors interested in subscription of share sale can subscribe through receiving banks’ branches and ATMs as well as electronic platforms of DFM, Emirates NBD, Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (Adib), Dubai Islamic Bank (DIB), First Abu Dhabi Bank (FAB), Mbank, and Wio.