EFG Hermes advises on Mubadala-owned Yahsat’s IPO on Abu Dhabi bourse

Yahsat’s IPO is the first ADX IPO since 2017

Egyptian investment bank EFG Hermes announced on Wednesday that it successfully completed advisory for Mubadala–owned Al Yah Satellite Communications’ (Yahsat) AED 2.7 billion ($735.1 million) initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX).

The IPO – the first on the exchange since 2017 – saw Yahsat offer 975.9 million shares – representing 40 percent of the share capital – to institutional and retail investors at an offer price of AED 2.75 per share. EFG Hermes said it acted as joint bookrunner on the IPO, with Yahsat beginning to trade on Wednesday under the stock symbol YAHSAT.

“We’re incredibly proud to have advised Mubadala on their first UAE IPO and the first IPO on the ADX since 2017, which garnered significant interest from a multitude of investor types, a key indicator that the UAE is ripe for a pickup in equity capital market activities.” said Mohamed Fahmi, EFG Hermes’ Co-Head of Investment Banking, in a statement.

“The transaction is special in that it brings to the market much needed diversity, with Yahsat offering investors a unique play on attractive yields from the intersection of technology and critical infrastructure.

“Following the successful conclusion of the $144 million (AED 529 million) IPO of Alkhorayef Water & Power Technologies (AWPT) in Saudi Arabia, the transaction once again demonstrates our ability to effectively bookbuild and transact in the GCC through our unrivaled global investor network.”

Yahsat is a leading fixed and mobile satellite services operator in the United Arab Emirates, and a wholly-owned subsidiary of Mubadala Investment Company (Mubadala). It was founded in 2007 to meet the growing demand for satcom services by providing a secure and reliable means of global connectivity. It offers fixed and mobile satellite services and integrated communications solutions to over 150 countries in Europe, the Middle East, Africa, South America, Asia, and Australasia.

“We’re glad to be building on our relationship with Mubadala today as they mark the first UAE IPO of a subsidiary in their expansive portfolio. Yahsat’s unique proposition has gathered a lot of traction and interest from local, regional, and international investors.” Moustafa El-Chiati, CEO of EFG Hermes UAE said.

“We’re extremely proud to be part of this landmark transaction that will pave the way for more offerings and enhance the economic diversification plans of the UAE. Our Investment Banking division has for years been the MENA region’s top ECM advisor by market share, with the Firm consistently driving the region’s largest and most successful public offerings.

“The completion of today’s transaction solidifies this reputation and primes us to capture the expected growth in ECM offerings both in the UAE and in the region.”

2021 is a landmark year for the EFG’s Investment Banking team, which closed a record 16 transactions so far worth $2.2 billion, 5 DCM transactions worth $194 million, 5 ECM transactions worth $1.1 billion and 5 M&A transactions worth $903 million.