Al Yah Satellite Communications (AlYahsat), a satellite communications company in Abu Dhabi, has set an indicative price range for its initial public offering which shows it could raise up to 2.976 billion dirhams ($810 million) in the IPO.
According to a press release from the State investor Mubadala’s satellite company, the offer price range has been set at Dh2.55 to Dh3.05 per share ($0.69 – $0.83). The final offer will be announced on July 9 and the listing is expected to take place on July 14.
UAE satellite operator plans to sell a minimum of 731.9 million shares to a maximum of 975.9 million shares, indicating it may raise at least 2.23 billion dirhams to a maximum of 2.976 billion dirhams.
Mubadala, the United Arab Emirates’ state-owned investment company, will remain a majority shareholder in Yahsat. Around 30% of Yahsat’s shares will be made available to individuals and other investors in the UAE, as part of the UAE retail offering, and to qualified institutional and other investors, as part of the qualified investor offering.
It is expected that the Shares will be admitted to trading on the Abu Dhabi Securities Exchange (ADX) on 14th July 2021, subject to market conditions and obtaining relevant regulatory approvals.
Ali Al Hashemi, Chief Executive Officer of Yahsat said: “We believe that we have established a strong and proven operational and financial track record over the years which, coupled with the ever-growing adoption of technological solutions and promising prospects of the space industry in Abu Dhabi and the UAE more broadly, provides a compelling proposition for potential investors. We look forward to their participation in Yahsat’s growth story.”
Established in 2007, Yahsat is one of the largest providers of satellite communications services in the world in terms of annual revenues, Mubadala has said. It also owns satellite phone operator Thuraya.