Du's Offering Brings 3.15 Billion Dirhams

du's Secondary Offering Raises 3.15 Billion Dirhams for Owner

Emirates Integrated Telecommunications Company, better known as du, announced the final price of its secondary public offering (SPO) at 9.20 dirhams per share. The offering involved a total of 342.084 million shares, representing 7.55% of the company's share capital. Through the offering, the selling owner, a subsidiary of Mubadala Investment Company, Mamoura Diversified Global Holding, gained gross proceeds of 3.15 billion dirhams.

This transaction marks a significant milestone not only in du's history but also in the evolution of the United Arab Emirates' capital markets. Du's offering was the first fully marketed secondary public offering in the country, with its subscription book being heavily oversubscribed by both domestic and international institutional and retail investors.

Du's Goals: Enhancing Liquidity and Investor Base

Du's management clearly stated that the transaction aimed to increase trading liquidity and broaden the investor base. Following the offering, the free float of shares will rise to 27.7%, which not only improves trading flexibility but also allows the company the possibility of inclusion in international indices such as MSCI, attracting further institutional investors.

The company emphasized that du's long-term strategy aligns with the UAE's digital transformation, in which it aims to be a driving force. Its stable financial performance, continuous operational growth, and innovation-based business model have fostered confidence among investors, both local and foreign.

Dual-Channel Sales, Guaranteed Retail Allocation

The share offering was conducted through two channels: 5% of the shares were available to retail investors, while the remaining 95% were allotted to institutional players.

Every retail investor received at least 500 shares, and any over-subscription payments will be refunded by September 16. The trading of shares on the Dubai Financial Market (DFM) is set to commence on September 16, with the final settlement for institutional investors occurring on September 18.

International Banks Coordinated the Transaction

The offering was coordinated by several globally recognized financial institutions: Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, and Goldman Sachs International jointly served as joint global coordinators and joint bookrunners.

This partnership demonstrates that the UAE's financial ecosystem is becoming increasingly attractive to international players. The participation of such prestigious financial entities in the share offering of a local telecommunications company underscores the market's confidence and the economic stability of the country.

Long-Term Value Creation for Shareholders

Du's management highlighted that the SPO was not merely a one-time financial transaction but also a strategic step. The company remains committed to creating shareholder value through technological advancements, enhancing customer experience, and expanding digital services.

In the UAE's ongoing digitalization process, the telecommunications sector plays a pivotal role. Du aims to be an active shaper of this change while maintaining financial stability and expanding its customer base.

Why is this Move Important for the UAE Stock Market?

The sale of shares in such volume by a major state-owned company to the open market sends a positive message to investors in the region. More companies might see opportunities in increasing their publicly traded share ratios following du's example, thereby strengthening market transparency and investor activity.

The robust retail interest during the offering suggests that people are increasingly willing to invest long-term in local companies, especially in sectors like telecommunications that are closely tied to their daily lives.

Summary

Du's successful secondary share offering is significant in multiple ways. It reinforces the company's market presence and showcases the maturity and dynamism of the UAE's financial sector. The transparent structure, guaranteed retail participation, and institutional oversubscription all indicate that the country's capital market is ready for the next phase of its development.

As the company moves towards a digital future, shareholder confidence and open market presence become increasingly important. This transaction serves as a testament to how this can be effectively achieved—with international backing and local commitment on the Dubai stock exchange.

(Source of article based on Emirates Integrated Telecommunications Company (du) announcement.)