Yahsat could raise up to $811m through IPO

Mubadala Investment Company's Al Yah Satellite Communications could raise up to Dh2.98 billion ($811 million) through its coming initial public offering on the Abu Dhabi Securities Exchange.

The company, better known as Yahsat, has set a price range of between Dh2.55 and Dh3.05 per share for its listing. It really is selling between 30 % and 40 % of its shares to retail and institutional investors through its debut listing, scheduled to occur on July 14.

The rest will be held by Mamoura Diversified Global Holding, a wholly owned subsidiary of Abu Dhabi sovereign fund Mubadala.

“We have established a strong and tested operational and financial track record through the years which, coupled with the ever-growing adoption of technological solutions and promising prospects of the area industry in Abu Dhabi and the UAE more broadly, offers a compelling proposition for potential investors," said Ali Al Hashemi, Yahsat's chief executive.

"We anticipate their participation in Yahsat’s growth story.”

Yahsat was founded in 2007 and today operates in a lot more than 150 countries across five continents.

Its five satellites reach a lot more than two thirds of the world’s population. A sixth is expected to launch in the next half of 2023 and begin commercial operations 12 months later.

The company provides its satellite infrastructure to both government and commercial customers.

It has a 15-year agreement with the UAE government signed in 2011 that delivers "cashflow and visibility" of earnings and is an "important element of the country's National Space Strategy", it said in a statement announcing the pricing range.

Yahsat made a profit due to its owner of $68.9 million last year, more than double its 2019 profit of about $29.9m, despite a 7 per cent fall in earnings to $407.5m, according to an advertisement for the business's IPO published in the June 27th edition of The National.

The IPO market in the Mena region got off to a "slower than expected" start through the first three months of the entire year, with three company listings raising $295 million, compared with four companies raising $814m in the same quarter last year, consultancy firm EY said earlier this month.

In Saudi Arabia, Alkhorayef Water & Power Technologies raised $144m and Theeb Rent an automobile raised $138m - both sold 30 % of their shares on the Tadawul currency markets. Oman Reit, a real estate investment trust, raised $13.2m on the Muscat STOCK MARKET.

“As we consider the remainder of 2021 and beyond, there are plenty of reasons to be optimistic about the coming quarters ahead," said Gregory Hughes, EY Mena's IPO and transaction diligence head.

"A solid IPO pipeline in key Mena markets across sectors, in conjunction with various government initiatives to deepen the administrative centre markets, particularly in Saudi Arabia and the UAE, should help bring more IPOs to markets in your community".

On Sunday, Tanmiah Food Company, a Saudi Arabian producer of meat and poultry products, also said it plans to list on Tadawul. It really is offering six million shares, or 30 per cent of the company, and has set a range of 59 Saudi riyals to 67 riyals per share. Almost one million more shares could be offered to retail investors. If both offers are fully subscribed, the company would raise about 469m riyals ($125m) at the top of its range.

Most Gulf capital markets have made strong double-digit gains since the start of year, with the Abu Dhabi Securities Exchange up 32.6 % so far this season, as of 11.15am on Sunday.

Saudi Arabia's Tadawul index has gained 25.7 per cent and the Dubai Financial Market is up 15.4 per cent.

In January, the Abu Dhabi Securities Exchange, owned by state holding company ADQ, said it plans to double its market capitalisation within 3 years.

The exchange gained its hottest entrant on Sunday, when Abu Dhabi's International Holding Company listed shares in Alpha Dhabi Holding, where it holds a 45 per cent stake.

Alpha Dhabi, formerly referred to as Trojan Holding, employs about 40,000 people through 25 subsidiaries. The business earned a net profit of Dh218m this past year on earnings of Dh3.8bn.