Mubadala’s Satellite Group Yahsat IPO Raises $731 Million

Abu Dhabi sovereign fund Mubadala Investment Co. has raised 2.7 billion dirhams ($731 million) in an initial public offering of satellite operator Yahsat after pricing shares near the middle of a marketed range.

A subsidiary of the fund sold 975.9 million shares in Yahsat, which trades under the name Al Yah Satellite Communications Co., for 2.75 dirhams each, according to a statement Friday, after marketing them for between 2.55 dirhams and 3.05 dirhams each.

The share sale is the second largest on record in Abu Dhabi, after Abu Dhabi National Oil Co. for Distribution PJSC raised $850.8 million in a 2017 offering, according to data compiled by Bloomberg. It is also the first IPO in Abu Dhabi since that listing.

The IPO gives Yahsat a market value of about 6.7 billion dirhams, according to the statement. Yahsat will remain majority owned by Mubadala after the listing.

The offering was multiple times oversubscribed and attracted interest from “high quality, global institutional investors allowing for increased foreign direct investment into the UAE,” according to the statement. The Emirates Investment Authority subscribed to 5% of the final offer size.

Sovereign funds ADQ and Mubadala -- alongside the emirate’s state oil company -- have signaled their intentions to list more assets locally.

“This IPO paves the way for further interest and investment in similar, future transactions,” the company said.

First Abu Dhabi Bank PJSC, Bank of America Corp. and Morgan Stanley led the offering, while Abu Dhabi Commercial Bank PJSC, EFG-Hermes Holding Co. and HSBC Holdings Plc were the joint bookrunners. The shares are set to begin trading on July 14.

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