It will begin by listing at least 30% in the company – a stake currently owned by Mubadala's wholly-owned subsidiary Mamoura Diversified Global Holding PJSC – however there are plans for this to increase.
Ali Al Hashemi (pictured left), CEO at Yahsat, said: “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. 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 Yahsat’s growth story.”
The possibility of a listing was first discussed in February and in May it was reported that Bank of America and Morgan Stanley had been hired as advisors.
At the time, sources told Bloomberg that a listing was imminent and that conversations were ongoing with various financial institutions, including banks. However, today's announcement is the first official confirmation of the IPO.
The official press announcement did not quote prices for the shares, but an advert in UAE newspaper The National, said Yahsat will offer a minimum of 731,931,080 shares and a maximum of 975,908, 106, with a value of AED1 per share, initially "representing a minimum of 30% and a maximum of 40% of the issued share capital in the company".
Yahsat will apply for admission of all of its shares to listing and trading on the Abu Dhabi Stock Exchange.
The satellite operator is owned by Mubadala – Abu Dhabi's $232 billion state-controlled wealth fund – and has hired a number of new executives over the last year, including a new CFO, Andrew Cole, in July 2020 and a new CEO and board members this February.
Musabbeh Al Kaabi (pictured right), CEO 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 world’s 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 Dhabi’s Stock Exchange further reiterates our role in contributing to the growth of the UAE economy.”
First Abu Dhabi Bank PJSC, Merrill Lynch International and Morgan Stanley & Co. International plc have been appointed as Joint Global Coordinators and Abu Dhabi Commercial Bank PJSC, EFG Hermes UAE Limited and HSBC Bank Middle East Limited have been appointed as Joint Bookrunners. First Abu Dhabi Bank PJSC has been appointed as the lead receiving bank and Abu Dhabi Commercial Bank PJSC has been appointed as a receiving bank.
The Offering has been declared Sharia compliant by the Internal Sharia Supervision Committee of HSBC Bank Middle East Limited.
