Abu Dhabi state-owned sovereign wealth fund, Mubadala will offer 30 percent to 40 percent of its satellite firm Yahsat in an initial public offering (IPO), with a listing likely in the third quarter, according to a statement.
The satellite operator has filed its first listing on the Abu Dhabi bourse since the IPO of Abu Dhabi National Oil Company (ADNOC) Distribution in 2017. Even after the listing, Mubadala will remain a majority shareholder and it could offer 731.9 million to 975.9 million shares. The offer period was from June 27 to July 6, it added.
Recently, Abu Dhabi’s top state holdings have started to increase their efforts to boost the domestic equity market and diversify the economy away from oil. Sovereign funds ADQ and Mubadala, alongside the emirate’s state energy company, have revealed their plans to list more assets locally.
Established in 2007, Yahsat is one of the largest providers of satellite communications services in the world in terms of annual revenues, Mubadala said in a statement. The company boasts a fleet of five satellites and owns satellite phone operator Thuraya Telecommunications.
First Abu Dhabi Bank (FAB), Bank of America’s securities unit and Morgan Stanley & Co have been appointed as joint global coordinators and Abu Dhabi Commercial Bank, EFG Hermes and HSBC as joint book-runners.
Yahsat is among the three portfolio companies that Mubadala is pushing to go public this year, sources said. It is close to deciding on listing Emirates Global Aluminium, which is owned by Mubadala and Investment Corp of Dubai, and nearing a potential US listing of Santa Clara-based semiconductor producer Globalfoundries, as per the sources. Separately, ADNOC is considering listing its drilling business and its fertilizer joint venture Fertiglobe.