Mubadala subsidiary aims to garner as much as Dh3.4 billion through the sale of du shares

In a significant move, Dubai telecoms operator du, officially known as Emirates Integrated Telecommunications Company, has announced a secondary share sale offer. This decision comes after Mamoura Diversified Global Holding, a unit of Mubadala Investment Company, decided to sell 342 million shares in du.

The offering will consist of two tranches: a retail offer open to individual and other investors, and a tranche for qualified institutional investors in the UAE and globally. The subscription period for both tranches begins on September 8 and is expected to end on September 12.

The price range for the shares has been set between Dh9 and Dh9.90 per share, and the final offer price will be announced on September 15. The offering could raise up to Dh3.39 billion ($923 million), providing a boost to du's finances.

The move by Mamoura Diversified Global Holding follows a period of significant growth for du. The company reported a more than 25% annual jump in its second-quarter profit, with net profit for the three months to the end of June climbing to Dh727 million. Revenue for du also jumped 8.6% to Dh3.9 billion.

Bakheet Al Katheeri, chief executive of the UAE Investment Platform at Mubadala, stated that Mamoura has contributed meaningfully to du's transformation. He added that the sale of shares is part of a larger strategy to improve liquidity, diversify the shareholder base, and support Adnoc L&S's inclusion in the MSCI Emerging Market Index.

Currently, the Emirates Investment Authority is the majority shareholder in du with a stake of just over 50%. Prior to the sale, Mamoura's stake in du was more than 10%.

Meanwhile, another major announcement has been made regarding the listing of shares on the Abu Dhabi Securities Exchange (ADX). Egypt's Orascom Construction is planning to list its shares on ADX this month. Orascom's shares will trade under the symbol Oras on ADX from September 11.

This decision comes after Abu Dhabi National Oil Company raised $317 million by offering 222 million shares in Adnoc Logistics and Services. In a similar vein, Dubai Holding announced the listing of its Dubai Residential Reit in May, raising $584 million through the IPO.

As of June 30, du had more than 9.1 million mobile subscribers. With this secondary share sale offer, the company is poised to continue its growth trajectory and potentially beat its record 2024 net income. Du's transformation, aided by investments from entities like Mubadala and the Emirates Investment Authority, is a testament to the UAE's thriving telecoms sector.

Mubadala subsidiary aims to garner as much as Dh3.4 billion through the sale of du shares