Mubadala Sells Down Stake in UAE Carrier Du for $858 Million - Bloomberg
Abu Dhabi wealth fund Mubadala Investment Co. raised about $858 million from the sale of a stake in Emirates Integrated Telecommunications Co. PJSC after pricing the deal at the lower end of a planned range.
The wealth fund offered a 7.55% stake in the firm, known as Du, at 9.2 dirhams ($2.5) apiece. That’s a 6.1% discount to its Sept. 12 close, and towards the lower end of a 9 dirhams to 9.90 dirhams price range.
The offer was oversubscribed multiple times, drawing in domestic and international investors. Allocations among institutions were skewed toward long-only accounts, local investors and those that have actively engaged with management, according to terms of the deal seen by Bloomberg News. The 20 largest accounts snapped up more than 70% of shares on offer.
The move will increase Du’s free float, help diversify its investor base and improve liquidity, the company has previously said. Mubadala will continue to hold just over 2% of Du post the offer.
The deal adds further impetus to secondary share sales, which have been picking up in the United Arab Emirates. Such deals have generated $5 billion in proceeds this year, surpassing proceeds from initial public offerings.
Du went public in 2006 in a 2.4 billion dirham IPO. Federal wealth fund Emirates Investment Authority remains its largest shareholder with a stake of just over 50%. Mubadala previously sold a 10% stake to EIA in 2019 for $630 million.
No comments:
Post a Comment