A. SREENIVASA REDDY (ABU DHABI)

Mamoura Diversified Global Holding, a subsidiary of Mubadala Investment Company, is offering a significant portion of its stake in Emirates Integrated Telecommunications Company (du) through a secondary public offering of shares.

A statement and prospectus on the secondary public offering were released on Monday by du, which is a listed company on Dubai Financial Market (DFM).

The offering involves up to 342 million shares priced in the range of Dh9.00 to Dh9.90 per share, representing about 7.55% of du’s issued share capital and 75% of Mamoura’s holding. The sale will not result in dilution for existing shareholders as all shares offered belong to Mamoura.

As per the latest data, Mamoura holds a 10.06% in stake in the company.

Another state-backed fund Emirates Investment Authority holds 50.12% stake in du.

According to du, the transaction is expected to significantly raise the company’s free float and enhance stock liquidity on the Dubai Financial Market. The final offer price will be determined through a bookbuilding process and announced on September 15.

The offering is divided into two tranches. The first tranche, representing 5% of the offer shares, is open to retail investors in the UAE holding a National Investor Number (NIN). The minimum subscription size is Dh5,000, with guaranteed allocation of up to 500 shares per investor. The retail tranche closes at 12pm on September 12.

The second tranche, accounting for 95% of the shares, is directed at qualified institutional investors, including professional investors in the UAE and abroad. Subscription for this tranche closes on the same date. Settlement and trading of the newly allotted shares are expected to commence on September 16.

All remaining shares held by Mamoura after the sale will be subject to a 90-day lock-up period.

Fahad Al Hassawi, Chief Executive Officer of du, said: “The transaction offers a great opportunity for retail and institutional investors to participate in du’s growth story. Over the last few years, our UAE-focused strategy and efficient capital deployment have resulted in exceptional financial and operational performance and created significant value to our shareholders.

"We welcome Mamoura’s initiative, which will lead to a significant increase in du’s free float. This transaction is expected to broaden the investor base and stimulate trading liquidity, therefore providing a pathway towards inclusion in key international indices.”

Dr. Bakheet Al Katheeri, CEO, UAE Investment Platform, Mubadala, added: “Mubadala plays a key role in advancing the national economic agenda, a role clearly demonstrated through nearly two decades of support for du through our subsidiary Mamoura, as a founding shareholder. 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.

"With a strong roadmap and proven performance, du is well positioned for its next phase of growth. This transaction marks a milestone for UAE capital markets, setting a new benchmark for secondary offerings in the region. It broadens investor participation, and enables us to responsibly redeploy capital while supporting sustained value creation.”

The UAE telecoms market generated more than Dh50 billion in revenues in 2024, with du expanding both mobile and fixed-line market share. As of June 30, 2025, du reported more than 9.1 million mobile subscribers, an annual growth of 10.8%, and a 12% rise in fixed-line customers to over 700,000.

In the first half of 2025, du recorded revenue of Dh7.8 billion, up 8% year-on-year. EBITDA grew 16% to Dh3.7 billion, net profit surged 22% to Dh1.4 billion, and operating free cash flow rose 16% to Dh2.7 billion. Du has paid uninterrupted dividends since 2012, including a record dividend of Dh0.54 per share for 2024, a 59% increase over the previous year.

The Shariah committees of Emirates NBD Bank and First Abu Dhabi Bank have confirmed that the offering complies with Shariah principles, though investors should conduct their own due diligence.

Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, and Goldman Sachs International are acting as Joint Global Coordinators and Bookrunners. Emirates NBD Bank has been appointed as Lead Receiving Bank, alongside several other UAE banks serving as receiving banks for the offer.