Al Yah Satellite Communications Company, a public joint stock company “Yahsat”, has announced the start of the subscription period for the initial public offering of a portion of its shares for sale, starting from today, June 27, 2021, until Tuesday, July 6, 2021 for individuals and other investors in the country “in the framework of the offering for individuals in the UAE.” Until Thursday, July 8, 2021, for companies and persons eligible to subscribe “in the framework of the offering intended for qualified investors.”
The price range for the offering was set between 2.55 and 3.05 dirhams per share. The final offer price of the shares is expected to be announced on July 9, 2021.
This offering provides a unique opportunity for investors to participate in the strategic growth of the national company, which is considered one of the world’s leading companies in providing integrated satellite communications services. Mubadala will remain a major shareholder/owner of a majority stake/ in Yahsat after the listing, as the offering shares will represent a minimum of 30% and a maximum of 40% of the total shares owned by Al Maamoura Diversified Global Holding PJSC, the “selling shareholder”. “, a company wholly owned by Mubadala Investment Company PJSC. The shares are expected to be listed on the Abu Dhabi Securities Exchange on July 14, 2021, subject to market conditions and obtaining all required regulatory approvals.
Ali Al Hashemi, CEO of Yahsat, said: “We have succeeded in building a track record of excellence in terms of our financial and operational performance over the years, which qualifies us strongly to provide attractive and rewarding opportunities for potential investors in light of the increasing global trend towards technical solutions and promising prospects for the space industries in Abu Dhabi and the UAE in general, and we look forward to receiving new investors who will share with us Yahsat’s growth and development process.” Yahsat was established in the UAE in 2007 with the aim of providing reliable and secure satellite communications around the world, and to meet the growing demand for satellite communications services. Today, the company is the preferred partner for integrated satellite communications solutions and services and a center of excellence for clients in the government and commercial sectors, with operations and services covering more than 150 countries across five continents.
It is scheduled to be offered in two tranches, the first tranche includes individual subscribers and investors in the UAE, while the second tranche includes subscribers of companies and persons eligible to subscribe in the UAE from other countries, provided that the share offering price is determined by following the share price building mechanism. Based on the record of subscription orders. All shares are offered by the selling shareholder, who, prior to the offering, is the only shareholder in Yahsat. The company and the selling shareholder will agree to the closing arrangements that restrict the procedures for disposing of the company’s shares for a period of time after accepting the listing of the shares.
The details of the subscription are available in the prospectus in Arabic and the public subscription announcement for the offering of the first tranche of individual subscribers in the country, and an international offering memorandum in English for the offering of the second tranche of subscribers from companies and qualified investors.
The prospectus for individual subscribers and the public announcement were both issued on June 21, 2021, and the international offering memorandum is expected to be published today. First Abu Dhabi Bank has been appointed; Merrill Lynch International; Morgan Stanley & Co. International PLC, as Joint Global Coordinators, has also appointed Abu Dhabi Commercial Bank; EFG Hermes UAE; and HSBC Bank Middle East Limited, as joint bookrunners.
First Abu Dhabi Bank was designated as the lead receiving bank, and Abu Dhabi Commercial Bank was designated as the receiving bank. The Internal Shari’a Supervisory Committee of HSBC Bank Middle East Limited approved that the offering is Shari’a compliant.