Du's Successful Secondary Offering Raises AED 3.15B
Emirates Integrated Telecommunications Company PJSC, known as du, completes a significant secondary public offering, raising AED 3.15 billion.
Summary
Du has successfully completed its secondary public offering, raising AED 3.15 billion for its selling shareholder, Mamoura Diversified Global Holding PJSC.
Emirates Integrated Telecommunications Company PJSC, popularly known as du, has announced the successful completion of its secondary public offering. The offering, which was launched on September 8th, resulted in the sale of 342,084,084 shares, representing 7.55% of du's share capital. These shares were offered by Mamoura Diversified Global Holding PJSC, a subsidiary of Mubadala Investment Company PJSC, and accounted for 75% of Mamoura's stake in du.
The offering was divided into two tranches: a UAE retail offer constituting 5% of the total offer shares and a global offering representing 95% of the total offer shares. The global offering targeted qualified institutional investors both within the UAE and in various jurisdictions outside the United States, in compliance with Regulation S under the US Securities Act of 1933. In the United States, the offering was available to qualified institutional buyers as defined under Rule 144A of the Securities Act.
The final offer price was set at AED 9.20 per share, generating approximately AED 3.15 billion in gross proceeds for the selling shareholder, Mamoura. This significant capital influx underscores investor confidence in du's strategic direction and market position.
Fahad Al Hassawi, the CEO of du, expressed satisfaction with the outcome, highlighting the company's commitment to delivering value to its shareholders and enhancing its service offerings across the UAE. The successful completion of this offering not only strengthens du's financial position but also aligns with its long-term growth objectives.
From an investment perspective, the successful secondary offering and the substantial funds raised provide du with enhanced financial flexibility to pursue growth opportunities and further invest in its infrastructure and service capabilities. However, given the current market conditions and the competitive landscape in the telecommunications sector, a 'hold' recommendation seems prudent at this time. Investors should monitor du's strategic initiatives and market performance closely before making any further investment decisions.
Source
Summary
Emirates Integrated Telecommunications Company PJSC, known as "du," announced the successful completion of a secondary public offering of its shares, listed on the Dubai Financial Market. The offering, launched on September 8, involved 342,084,084 shares, representing 7.55% of du's share capital. These shares were offered by Mamoura Diversified Global Holding PJSC, a subsidiary of Mubadala Investment Company, and accounted for 75% of Mamoura's stake in du. The final offer price was AED 9.20 per share, generating approximately AED 3.15 billion in gross proceeds for Mamoura. The offering consisted of two tranches: a UAE retail offer, which made up 5% of the total shares, and a global offering to qualified institutional investors, representing 95% of the shares.
