Dubai: Abu Dhabi's Mubadala Investment Co. has picked Bank of America Corp. and Morgan Stanley to advise on a potential initial public offering of satellite operator Yahsat, people familiar with the matter said.
Al Yah Satellite Communications Company, owned by the $232 billion state-controlled wealth fund, is likely to be listed in Abu Dhabi, the people said. No final decisions have been made on the size or timing of the offering, they said, asking not to be named as the details aren't public.
Mubadala, BofA and Morgan Stanley declined to comment.
Ali Al Hashemi, who took over as Yahsat's chief executive this month, told Bloomberg in February that Mubadala was considering an IPO of the firm, which provides satellite communications solutions in over 150 countries. It has a fleet of five satellites and owns satellite phone operator Thuraya Telecommunications.
The planned IPO comes as Abu Dhabi's government seeks to deepen its financial markets and diversify its sources of funding. State energy company Abu Dhabi National Oil Co. is discussing IPOs of its drilling business and a fertilizer joint venture. Mubadala's Emirates Global Aluminium PJSC is also considering listing on the local market.