Al Yah Satellite Communications, or Yahsat, the satellite operator owned by Mubadala Investment Company, plans to sell at least 30 per cent of its shares in what would be the first public offering on the Abu Dhabi Securities Exchange since 2017.
The offering and subsequent listing are currently expected to take place in the third quarter of this year, subject to market conditions and relevant regulatory approvals, the Abu Dhabi Media Office said in a statement on Monday.
It will be open to retail and qualified institutional investors. The offer price per share will be determined through a book-building process.
Mubadala will remain the major shareholder after the listing.
“In line with our mandate to drive technological transformation and economic diversification of the UAE, we strive to develop a world-class innovation and technology-driven ecosystem that attracts investment into Abu Dhabi and the UAE more broadly,” said Musabbeh Al Kaabi, chief executive of UAE Investments at Mubadala and chairman of Yahsat.
“We believe the listing of Yahsat on Abu Dhabi’s Stock Exchange further reiterates our role in contributing to the growth of the UAE economy.”
Yahsat plans to sell a minimum of 731.9 million shares and a maximum 975.9 million shares at a nominal value of Dh1, representing a stake that is between 30 per cent and 40 per cent of its Dh2.44 billion ($664.85 million) issued share capital, the company said in an offer document advertised in The National on Monday.
The offer period for the first, second and third tranches will begin on June 27.
The first and third tranches are expected to close on July 6, while the second tranche will end on July 8, the company said.
The price range of the initial public offering will be announced on the first day of the offer period and trading in the company’s shares is set to begin on July 14 on the ADX, according to the offer document.
First Abu Dhabi Bank, Merrill Lynch International and Morgan Stanley have been appointed as joint global co-ordinators while Abu Dhabi Commercial Bank, EFG Hermes and HSBC are joint bookrunners. First Abu Dhabi Bank is the lead receiving bank.
Established in 2007, Yahsat operates in more than 150 countries across five continents. Its five satellites reach more than two thirds of the world’s population, enabling critical communications including broadband, broadcasting and mobility solutions.
The announcement marks an “important milestone in Yahsat’s journey as we continue to build on our strong national and international partnerships and invest in new technology to drive future growth”, said chief executive Ali Al Hashemi.
“We believe we have established a strong and proven operational and financial track record over the years and look forward to welcoming new investors to participate in Yahsat’s growth story.”
The company’s IPO will be the first in Abu Dhabi since Adnoc listed 10 per cent of retail arm Adnoc Distribution on the ADX.
The state oil company subsequently sold another 10 per cent stake and last month raised $1.64bn through the sale of new shares and the issue of exchangeable bonds in Adnoc Distribution, potentially pushing its free float on the ADX to 30 per cent.
Emirates Global Aluminium, the UAE’s biggest industrial company outside the oil and gas sector, is among the other companies evaluating a stock exchange listing.
EGA, which is owned by Mubadala and the Investment Corporation of Dubai, delayed its 2018 listing plans amid market volatility. However, conditions have improved considerably and there is a push for more listings in Abu Dhabi, said Jaap Meijer, managing director and head of research at Dubai investment bank Arqaam Capital.
The Abu Dhabi stock market “is becoming an interesting market – more liquidity, more listings and that is what we want to see”, he said.
Mr Meijer expects sovereign wealth fund assets to be more actively managed, which increases the likelihood of more merger and acquisition deals and public offerings in the future.
“Sentiment has been very favourable for our [UAE] markets,” he said. “Valuations have improved quite a lot and it is still a good time to do listings”.
The ADX, the best performing bourse in the Middle East this year, is up 31.7 per cent since the beginning of the year, with a market value of $261bn.
The exchange, which expects 10 new stock listings this year, plans to double its market capitalisation over the next three years through its "ADX One" strategy.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Sun jukebox
Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)
This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.
Elvis Presley, Mystery Train (1955)
The B-side of Presley’s final single for Sun bops with a drummer-less groove.
Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)
Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.
Carl Perkins, Blue Suede Shoes (1956)
Within a month of Sun’s February release Elvis had his version out on RCA.
Roy Orbison, Ooby Dooby (1956)
An essential piece of irreverent juvenilia from Orbison.
Jerry Lee Lewis, Great Balls of Fire (1957)
Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.
A Prayer Before Dawn
Director: Jean-Stephane Sauvaire
Starring: Joe Cole, Somluck Kamsing, Panya Yimmumphai
Three stars
Past winners of the Abu Dhabi Grand Prix
2016 Lewis Hamilton (Mercedes-GP)
2015 Nico Rosberg (Mercedes-GP)
2014 Lewis Hamilton (Mercedes-GP)
2013 Sebastian Vettel (Red Bull Racing)
2012 Kimi Raikkonen (Lotus)
2011 Lewis Hamilton (McLaren)
2010 Sebastian Vettel (Red Bull Racing)
2009 Sebastian Vettel (Red Bull Racing)
More from Neighbourhood Watch:
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
Persuasion
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