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July 2, 2021

Yahsat plans Abu Dhabi initial public offering in Q3 2021

By GlobalData Technology

The UAE’s Al-Yah Satellite Communications Company (Yahsat) has announced plans to list on the Abu Dhabi Securities Exchange in 2021.

Yahsat intends to proceed with an initial public offering (IPO) of part of its existing 2,439,770,265 shares, with a nominal value of AED1 a share.

Plans are to list a minimum of 731,931,080 and a maximum of 975,908,106 ordinary shares, representing a minimum of 30 per cent and a maximum of 40 per cent of the issued share capital of the company.

Yahsat’s sole shareholder is Mamoura Diversified Global Holding, a wholly owned subsidiary of Mubadala Investment Company, Abu Dhabi’s sovereign wealth fund.

Individuals and other investors will be invited as part of the UAE retail offering, and qualified institutional investments will also be invited.

The offer period for the first of three tranches starts on 27 June and is expected to close on 6 July for the first and third tranches, and on 8 July for the second tranche.

The first tranche will comprise 9 per cent of the offer shares, while the second and third tranches will make up 90 per cent and 1 per cent, respectively.

The offer price range will be announced on the first day of the offer period on 27 June, and the outcome of the book-building process will be publicised on the Abu Dhabi bourse on 9 July.

Listing is expected to take place in the third quarter of 2021, subject to regulatory approvals.

First Abu Dhabi Bank (FAB), Merrill Lynch International and Morgan Stanley & Co. International have been appointed as joint global coordinators.

Abu Dhabi Commercial Bank (ADCB), EFG Hermes UAE Limited and HSBC Bank Middle East have been appointed as joint bookrunners.

FAB and ADCB have been appointed as the lead receiving bank and a receiving bank, respectively.

The offering has been declared sharia-compliant by the internal sharia supervision committee of HSBC Bank Middle East.

Upon listing, Yahsat’s board is planned to consist of nine non-executive directors, chaired by Musabbeh Helal Musabbeh Ali al-Kaabi, who is understood to be CEO of Mubadala’s UAE investments.

Yahsat was established as a private joint stock company in 2007 and converted to a public joint stock company on 17 June 2021.