Mubadala's Yahsat IPO set to raise $730 million after final pricing

DUBAI (Reuters) – The initial public offering (IPO) of Yahsat, the satellite company of Abu Dhabi state investor Mubadala, is set to raise 2.68 billion dirhams ($730 million) after the deal was priced around the middle of an indicative price range.

Al Yah Satellite Communications Co (Yahsat) priced its IPO at 2.75 dirhams, against an earlier indicative price range of 2.55-3.05 dirhams a share, it said in a statement.

This is the first major IPO on the Abu Dhabi bourse since Abu Dhabi National Oil Co Distribution was listed in 2017.

Mubadala is selling a 40% stake in the deal, giving Yahsat a market capitalisation of 6.7 billion dirhams.

The Emirates Investment Authority has exercised its preferential right to subscribe 5% of the final offer size.

The deal garnered strong demand for the IPO at the middle of the indicative price range, Reuters reported on Thursday, citing three sources familiar with the deal.

Yahsat, which was set up in 2007, is one of the largest providers of satellite communications services in the world in terms of annual revenues, Mubadala has previously said. It also owns satellite phone operator Thuraya.

($1 = 3.6728 UAE dirham)

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