In a significant development for the UAE’s capital markets, Mamoura Diversified Global Holding, a subsidiary of Abu Dhabi’s Mubadala Investment Company, has announced plans to sell 342 million shares of Emirates Integrated Telecommunications Company PJSC, commonly known as du. This secondary public offering (SPO) represents 7.55% of du’s share capital and approximately 75% of Mamoura’s stake in the company. The offering is expected to raise up to AED 3.39 billion (approximately $920 million) and is poised to enhance du’s stock liquidity and broaden its investor base.
Background of du and Mubadala’s Involvement
Du, established in 2006, is a leading telecommunications and digital services provider in the UAE. The company is listed on the Dubai Financial Market and has been a key player in the UAE’s digital economy. Mubadala, through its subsidiary Mamoura, has been a significant shareholder in du since its inception, contributing to the company’s growth and development.
Details of the Secondary Public Offering
Offering Structure
The secondary offering comprises up to 342,084,084 shares, representing 7.55% of du’s share capital and 75% of Mamoura’s stake in the company. The offering is divided into two tranches:
- Retail Offering: 5% of the shares are allocated to retail investors in the UAE.
- Institutional Offering: 95% of the shares are reserved for qualified institutional buyers in the UAE and select international markets.
The price range for the shares is set between AED 9.00 and AED 9.90 per share. The final offer price will be determined through a bookbuilding process and announced on September 15, 2025.
Subscription Details
The subscription period for the offering runs from September 8 to September 12, 2025. Retail investors can subscribe through receiving banks’ branches and ATMs, as well as electronic platforms of Dubai Financial Market and participating banks. The minimum subscription for retail investors is set at AED 5,000, with a guaranteed allocation of up to 500 shares per investor. Institutional investors are required to subscribe for a minimum of AED 5 million.
Strategic Rationale Behind the Offering
Enhancing Liquidity and Market Depth
The primary objective of this secondary offering is to increase du’s free float and enhance stock liquidity. By making a significant portion of its shares available to the public, du aims to broaden its investor base, stimulate trading activity, and position itself for inclusion in key international indices.
Capital Reallocation by Mubadala
For Mubadala, this transaction represents a strategic move to responsibly redeploy capital. The proceeds from the sale will not be retained by du; instead, they will be used by Mamoura to support Mubadala’s broader investment objectives. This approach aligns with Mubadala’s role in advancing the national economic agenda and supporting sustainable value creation.
Financial Performance of du
In the first half of 2025, du reported robust financial results, reflecting its strong operational performance:
- Revenue: AED 7.75 billion, an 8% increase year-over-year.
- EBITDA: AED 3.6 billion, with a margin of 47%.
- Net Profit: AED 1.4 billion, a 22% increase year-over-year.
- Operating Free Cash Flow: AED 2.7 billion.
These results underscore du’s solid financial foundation and its capacity to drive growth in the competitive telecommunications sector.
Implications for Investors
Opportunities for Retail and Institutional Investors
This secondary offering provides an opportunity for both retail and institutional investors to participate in du’s growth story. Retail investors in the UAE can access the offering through a simplified subscription process, while institutional investors have the chance to acquire a significant stake in a leading telecommunications company. The anticipated increase in liquidity and potential inclusion in international indices may enhance the attractiveness of du’s stock to a broader investor audience.
Long-Term Outlook
Looking ahead, du is well-positioned to capitalize on the growing demand for digital services in the UAE and the broader region. With a strong financial performance, a diversified investor base, and a commitment to innovation, du aims to continue its trajectory as a key player in the telecommunications and digital services sectors.
Conclusion
Mubadala’s subsidiary Mamoura’s decision to launch a secondary public offering of du shares marks a significant milestone in the UAE’s capital markets. The offering not only provides an opportunity for investors to participate in du’s growth but also contributes to the development of a more liquid and diversified stock market. As du continues to expand its services and enhance its financial performance, this transaction sets the stage for its next phase of growth and development.
Do follow UAE Stories on Instagram
Read Next – ADNOC Gas to Join FTSE Emerging Index on 22 September 2025
