Abu Dhabi sovereign fund Mubadala Investment Co. has raised AED2.7 billion ($731 million) in an initial public offering of satellite operator Yahsat after pricing shares near the middle of a marketed range.
A subsidiary of the fund sold 975.9 million shares in Yahsat, which trades under the name Al Yah Satellite Communications Co., for AED2.75 each, according to a statement Friday, after marketing them for between AED2.55 and AED3.05 each.
The share sale is the second largest on record in Abu Dhabi, after Abu Dhabi National Oil Co. for Distribution PJSC raised $850.8m in a 2017 offering, according to data compiled by Bloomberg. It is also the first IPO in Abu Dhabi since that listing.
The IPO gives Yahsat a market value of about AED6.7bn ($1.8bn), according to the statement. Yahsat will remain majority owned by Mubadala after the listing.
Yahsat operates in more than 150 countries providing governments and commercial customers with integrated satellite communication solutions.
The offering was multiple times oversubscribed and attracted interest from “high quality, global institutional investors allowing for increased foreign direct investment into the UAE”, according to the statement. The Emirates Investment Authority subscribed to five percent of the final offer size.
Sovereign funds ADQ and Mubadala – alongside the emirate’s state oil company – have signalled their intentions to list more assets locally.
“This IPO paves the way for further interest and investment in similar, future transactions,” the company said.
First Abu Dhabi Bank PJSC, Bank of America Corp. and Morgan Stanley led the offering, while Abu Dhabi Commercial Bank PJSC, EFG-Hermes Holding Co. and HSBC Holdings Plc were the joint bookrunners. The shares are set to begin trading on July 14.
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