UAE’s du launches secondary public offering of Mubadala-owned shares

image: du

Emirates Integrated Telecommunications Company (du) has launched a secondary public offering of shares held by Mamoura Diversified Global Holding (Mamoura), a subsidiary of Mubadala Investment Company, in a move that will boost its free float and trading liquidity.

The transaction will see Mamoura sell up to 342,084,084 shares, representing 7.55 per cent of du’s share capital and 75 per cent of its stake in the company, du said in a statement.

The price range has been set at between Dhs9 and Dhs9.90 per share, with the final offer price to be determined through a bookbuilding process and announced on September 15.

The offer will be split into two tranches: a retail offering in the UAE comprising 5 per cent of the shares, and a global institutional offering covering the remaining 95 per cent.

The company will not receive proceeds from the transaction as all shares are being sold by Mamoura.

Shares that are not sold will be subject to a 90-day lock-up period, du said.

du CEO says offering will expand investor base

Fahad Al Hassawi, du’s chief executive, said the offering would broaden the investor base and stimulate liquidity, supporting potential inclusion in international indices.

Dr Bakheet Al Katheeri, chief executive of Mubadala’s UAE Investment Platform, said the deal marks a “milestone for UAE capital markets” and allows Mubadala to redeploy capital while supporting du’s next growth phase.

The subscription period for the UAE retail offer opens on September 8 and closes on September 12, with investors required to apply through receiving banks or Dubai Financial Market (DFM) channels.

Each retail investor will be guaranteed a minimum allocation of up to 500 shares.

Settlement for institutional investors is expected on September 18, with shares available for trading on the DFM from September 16.

Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank and Goldman Sachs are joint global coordinators and bookrunners for the offering. Emirates NBD is the lead receiving bank.