The shares of Al Yah Satellite Communications Company (Yahsat) will begin trading today, Wednesday, in the Abu Dhabi market under the symbol YAHSAT.
This comes after Mubadala Investment Company, the sovereign fund of Abu Dhabi, raised 2.7 billion dirhams ($731 million) in an initial public offering of its satellite operator, After the stock is priced near the middle of the marketing range.
According to Arabiya Net, a subsidiary of the fund sold 975.9 million shares in Yahsat, which is traded under the name Al Yah Satellite Communications Company, for 2.75 dirhams per share, according to A statement published on Friday, after being marketed in a range between 2.55 dirhams and 3.05 dirhams per share.
This is Abu Dhabi's second largest ever offering, after Abu Dhabi National Oil Company for Distribution (ADNOC Distribution) raised $850.8 million in a public offering in 2017.
The IPO gives Yahsat a market value of about 6.7 billion dirhams, the statement added. The majority stake in the company will remain owned by Mubadala after the listing.
The offering has been underwritten multiple times and has attracted the interest of global institutional investors allowing for an increase in foreign direct investment in the UAE, according to the statement. The Emirates Investment Authority has subscribed for 5% of the final offering.
Sovereign funds Abu Dhabi Holdings ADQ and Mubadala - along with the emirate's state oil company - have signaled their intention to list more assets locally. The company said that this IPO paves the way for more interest and investment in similar future deals.
The offering was led by First Abu Dhabi Bank, Bank of America Corp and Morgan Stanley, while Abu Dhabi Commercial Bank, EFG Hermes Holdings and HSBC were led by the IPO. Holdings joint directors.
