Dubai: The UAE satellite equipment company Al Yah Satellite Communications Co. is going for an IPO by offering nearly 30 per cent of its issued share capital to the public. The offer price is to be determined through a book-building process. The offer period starts from June 27 and close on July 6.
This near 30 per cent is is currently held by Mamoura Diversified Global Holding, a wholly-owned subsidiary of Abu Dhabi's wealth fund Mubadala Investment Company. The shares will be offered to individuals and other investors in the UAE (as part of the UAE retail offering) and to qualified institutional and other investors (as part of the qualified investor offering).
Musabbeh Al Kaabi, CEO of UAE Investments at Mubadala and Chairman of Yahsat, said: “Mubadala takes pride in the creation of Yahsat, and is proud of its position as one of the world’s leading fixed and mobile satellite communication providers, through its high caliber of talented UAE and international experts. We believe the listing of Yahsat on Abu Dhabi’s Stock Exchange further reiterates our role in contributing to the growth of the UAE economy.”
Abu Dhabi's stock market has been one of the best performing in the region since the second-half of 2020, led by stellar runs for International Holding Co., Aldar Properties and Etisalat, among others.
The offering and subsequent listing are expected to take place in the third quarter of 2021, subject to market conditions. (The offering has been declared Sharia-compliant by the Internal Sharia Supervision Committee of HSBC Bank Middle East.)
Abu Dhabi Commercial Bank, EFG Hermes UAE Ltd. and HSBC Bank M. E. will be joint bookrunners. First Abu Dhabi Bank is to be the lead receiving bank and Abu Dhabi Commercial Bank the receiving bank.
What is Yahsat into?
The satellite company has operations across more than 150 countries, being the preferred partner for integrated satellite communication solutions. The company was established in the UAE in 2007 to meet growing demand for satcom services. “Today’s announcement marks an important milestone in Yahsat’s journey as we continue to build on our strong national and international partnerships and invest in new technologies to drive future growth," said Ali Al Hashemi, CEO of Yahsat.
"We believe we have established a strong and proven operational and financial trackrecord over the years and look forward to welcoming new investors to participate in Yahsat’s growth story.”