Mubadala unit seeks to raise up to Dh3.4bn from du share sale

Mamoura Diversified is selling 342 million shares in the telco

Du has set a price range between Dh9 and Dh9.90 per share for its secondary share sale offering. Leslie Pableo for The National

Dubai telecoms operator du, officially known as Emirates Integrated Telecommunications Company, has launched a secondary share sale offer that could raise up to Dh3.39 billion ($923 million), as one of its main investors reduces its holding in the company.

Mamoura Diversified Global Holding, a unit of Mubadala Investment Company, is selling 342 million shares, representing 7.55 per cent of du’s share capital and 75 per cent of Mamoura’s stake in the company, the telecommunications company said in a statement on Monday to the Dubai Financial Market, where its shares are traded.

The price range has been set between Dh9 and Dh9.90 per share, with the final offer price set to be announced on September 15.

“We welcome Mamoura’s initiative, which will lead to a significant increase in du’s free float,” du’s chief executive Fahad Al Hassawi said.

“This transaction is expected to broaden the investor base and stimulate trading liquidity, therefore providing a pathway towards inclusion in key international indices.”

The offering will consist of two tranches. The UAE retail offer, comprising 5 per cent of the total offer shares, is open to individual and other investors. Up to 95 per cent of the offer shares will be allocated to 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.

Currently, the Emirates Investment Authority is the majority shareholder in du with a stake of just over 50 per cent, while Mamoura's stake was more than 10 per cent.

"We have contributed meaningfully to du’s transformation into a national champion—not only in the telecommunications sector, but also at the core of the UAE's digital economy," Bakheet Al Katheeri, chief executive of the UAE Investment Platform at Mubadala, said.

Du reported a more than 25 per cent annual jump in its second-quarter profit. Leslie Pableo for The National

"This transaction marks a milestone for UAE capital markets, setting a new benchmark for secondary offerings in the region."

The announcement comes as capital markets continue to see strong activity amid continued economic momentum in the UAE, the Arab world's second-largest economy.

Last month, Abu Dhabi National Oil Company raised $317 million by offering 222 million shares in Adnoc Logistics and Services through an institutional share sale. The move was aimed at improving liquidity, diversifying the shareholder base and supporting the case for Adnoc L&S's inclusion in the MSCI Emerging Market Index.

Egypt’s Orascom Construction is also planning to list its shares on the Abu Dhabi Securities Exchange (ADX) this month after delisting from Nasdaq Dubai.

Orascom’s shares will trade under the symbol Oras on ADX from September 11, the company said last month.

In May, Dubai Holding announced the listing of its Dubai Residential Reit, a Sharia-compliant, income-generating real estate investment trust on the Dubai bourse, in the first initial public offering in Dubai this year. The company raised $584 million through the IPO.

Du, which has been expanding its services, reported a more than 25 per cent annual jump in its second-quarter profit, on track to beat its record 2024 net income. Net profit for the three months to the end of June climbed to Dh727 million, with revenue jumping 8.6 per cent to Dh3.9 billion.

As of June 30, du had more than 9.1 million mobile subscribers.