Mubadala to sell up to 40% of satellite firm Yahsat via IPO

 Mubadala to sell up to 40% of satellite firm Yahsat via IPO

The Mubadala Investment Company-owned Al Yah Satellite Communications Co PJSC (Yahsat) is set go public and list on the Abu Dhabi Securities Exchange through an initial public offering.

Mubadala, a sovereign wealth fund of Abu Dhabi which currently owns 100% of Yahsat, will sell a minimum of 731.9 million and a maximum of 975.9 million shares in the company via the IPO. This represents between 30% and 40% stake in the company.

These shares are currently held by Mamoura Diversified Global Holding, a wholly owned subsidiary of Mubadala.

The subscription period will start on June 27 while the company is set to be listed by July 14.

The IPO has been in the works for several months. In February, the then Yahsat chief executive-designate Ali Al Hashemi had said that the communications company was looking at the possibility of an IPO “very closely”.

Yahsat provides integrated satellite communications services. It also offers mobile satellite communications, broadcasting services and satellite-based broadband internet services across more than 30 countries. These services are provided via five main divisions—Yahsat Government Solutions, Thuraya, YahClick, YahLink and YahLive.

Yahsat has a global footprint, with its services available across more than 150 countries in Europe, the Americas, Australia, Asia, Africa and the Middle East.

Last year, Yahsat began building a next-generation telecom system for its mobile satellite services subsidiary, Thuraya, which is set to go into operation by 2024.

First Abu Dhabi Bank, Merrill Lynchand Morgan Stanley have been appointed as joint global coordinators, while Abu Dhabi Commercial Bank, EFG Hermes UAE and HSBC Bank have been appointed as joint bookrunners.

First Abu Dhabi Bank has been appointed as the lead receiving bank and Abu Dhabi Commercial Bank has been appointed as a receiving bank.

Aman Malik

The Capital Quest