According to recent sources, the Satellite operator Yahsat has filed for a listing in Abu Dhabi. This filing is the first initial public offering on the emirate’s stock exchange since 2017. The Al Yah Satellite Communications Co. is fully owned by Abu Dhabi’s $243 billion sovereign fund Mubadala Investment Co., and they are planning to offer a stake of as much as 40% next month.
The company offers satellite communications solutions in over 150 countries. This attempt from Abu Dhabi’s top state holdings is to boost the domestic equity market and diversify the economy away from oil.
Its also been reported that Mubadala is also considering an IPO of Emirates Global Aluminum PJSC. Even the Abu Dhabi National Oil Co. is considering the same for its drilling business and a fertilizer joint venture.
In an interview, Musabbeh Al Kaabi, chief executive officer of UAE investments at Mubadala, said that Yahsat’s plan is a vote of confidence in the Abu Dhabi Securities Exchange. Its performance reflects the resilience of the economy of the United Arab Emirates.
“We’re bringing a technology play to the market. So that will provide diversity in the market. And we’ll position the ADX as a leading market in the region.”
The company in the year 2020 posted revenue of $408 million and was underpinned by long-term UAE government contracts, as well as it has a future backlog worth $2.2 billion. The investors are focusing to increasingly help a range of non-oil industries — from life sciences and health care to advanced manufacturing — to take root locally.
“We’re anticipating more activities and pushing the agenda on the newer sectors. These are some of the ideas that we’re trying to push going forward and try to help on the economic diversification of the UAE.”