The offering is expected to take place in Q3 of 2021 and will be open to retail and qualified institutional investors.
Al Yah Satellite Communications (Yahsat) has announced its intention to proceed with an initial public offering (IPO) of part of its existing shares and to apply for admission of all of its shares to listing and trading on the Abu Dhabi Securities Exchange (ADX).
Mubadala, the United Arab Emirates state-owned investment company, will remain a majority shareholder in Yahsat. Around 30% of Yahsats shares will be made available 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.
Speaking about the plan, Musabbeh Al Kaabi, Chief Executive Officer of UAE Investments at Mubadala and Chairman of the Board of Directors at Yahsat, said: “Mubadala takes pride in the creation of Yahsat, and is proud of its position as one of the worlds leading fixed and mobile satellite communication providers, through its high calibre of talented UAE and international experts. In line with our mandate to drive technological transformation and economic diversification of the UAE, we strive to develop a world-class innovation and technology-driven ecosystem that attracts investment in Abu Dhabi and the UAE more broadly. We believe the listing of Yahsat on Abu Dhabis Stock Exchange further reiterates our role in contributing to the growth of the UAE economy.”
Ali Al Hashemi, Chief Executive Officer at Yahsat, added: “Todays announcement marks an important milestone in Yahsats journey as we continue to build on our strong national and international partnerships and invest in new technologies to drive future growth. We believe we have established a strong and proven operational and financial track record over the years and look forward to welcoming new investors to participate in Yahsats growth story.”
The IPO and subsequent listing are currently expected to take place in Q3 of 2021, subject to market conditions and obtaining relevant regulatory approvals.
First Abu Dhabi Bank, Merrill Lynch International and Morgan Stanley & Co. International plc have been appointed as joint global co-ordinators while Abu Dhabi Commercial Bank, EFG Hermes and HSBC are joint bookrunners. First Abu Dhabi Commercial Bank is the lead receiving bank.
The IPO has been declared Sharia compliant by the Internal Sharia Supervision Committee of HSBC Bank Middle East Limited.