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The UAE telecom operator du is selling more than 342 million shares in the company, previously held by Mamoura Diversified Global Holding, as part of a new public offering, representing 7.55% of its share capital.
The price range has been set between 9.00 to 9.90 UAE dirhams per share ($2.45-$2.69), with the final offering to be determined through a bookbuilding process, which will be announced on September 15.
The two-tranche offering represents 75% of Mamoura’s stake in du, which is a fully owned entity of Abu Dhabi sovereign wealth fund, Mubadala Investment Company.
The UAE retail offer will comprise 5% of the offer shares and is open to individual and other investors (including companies and establishments) holding a National Investor Number (NIN) with the DFM.
A second, global offering, comprising 95% of the offer shares will comprise the second tranche and will be open to qualified institutional investors in the UAE and various other jurisdictions internationally.
Both offerings will run from September 8 until 12.
The telecom operator said the new offering will not result in any dilution of ownership rights in the company for existing shareholders.
Shares in du held by Mamoura which are not sold in the offering will be subject to a lock-up period of 90 days from the settlement date, subject to certain customary exceptions and waiver by the Joint Global Coordinators.
The Dubai Financial Market-listed company said it will hold a series of meetings with institutional investors ahead of the closing of the offering.
Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank and Goldman Sachs International are acting as Joint Global Coordinators and Joint Bookrunners.
Emirates NBD Bank has been appointed as the Lead Receiving Bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank, Al Maryah Bank Community Bank, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank and Wio Bank have also been appointed as Receiving Banks.
The telecom operator, which also has a comprehensive portfolio of mobile, fixed, ICT, network infrastructure, and fintech solutions, said the Mamoura offering will lead to a “significant increase in du’s free float”, broaden its investor base and stimulate trading liquidity.
(Writing by Bindu Rai, editing by Seban Scaria)
