Du kicks off follow-on offering as Mubadala’s Mamoura cuts stake

Mubadala trims du stake in follow-on offering: Mamoura Diversified Global Holding — Mubadala’s debt issuing arm — is floating an additional 7.6% stake in DFM-listed telco Emirates Integrated Telecommunications (du) on the Dubai bourse, according to a bourse disclosure (pdf). Some 342.1 mn shares are up for grabs by both retail and institutional investors here at home and abroad. Mamoura currently holds a 10% interest in du. The story was also picked up by Reuters.

ICYMI- News of Mubadala’s plans to pare down its stake in du first surfaced in March, when Bloomberg reported the fund was weighing a sell-down of its USD 1 bn holding. Mubadala last offloaded a 10% stake in 2019 to Emirates Investment Authority (EIA) for USD 630 mn, retaining a minority stake through Mamoura.

Proceeds + market cap: Du is guiding on a price range of AED 9-9.90 per share, which could see Mamoura raise up to AED 3.4 bn in proceeds, implying a market cap of AED 44.9 bn at listing, according to our calculations. Du will not receive any proceeds from the share sale.

What’s next: The bookbuilding process, which kicked off yesterday, ends this Friday, 12 September. The final offer price will be announced on Monday, 15 September with new shares set to start trading on 16 September, according to du’s offering webpage and prospectus (pdf). Institutional investors can place orders starting from AED 5 mn with no upper cap, while retail investors can book subscriptions with a minimum of AED 5k each.

EIA gets first dibs: As du’s largest shareholder, EIA — currently holding over 50% of the company — has a preferential right to take up to 5% of the offered shares, to be carved out of the institutional tranche. The bulk of the offering (95%) is reserved for institutions in the UAE, international markets under Regulation S, and under Rule 144A in the US — with the remaining 5% open to retail investors.

Market reax: Du’s stock closed down 3% at AED 9.60 yesterday.

IN CONTEXT- Secondary share sales are starting to eclipse new listings, with The UAE logging only two IPOs this year (Alpha Data on the ADX and Dubai Residential REIT on the DFM), while secondary sales have already pulled in nearly USD 3.8 bn through transactions from two Adnoc units, and First Abu Dhabi Bank (FAB), according to Bloomberg.

Boasting healthy financials: Du saw its net income jump 22.4% y-o-y to AED 1.4 bn in 1H 2025, while its top line rose 8% y-o-y to AED 7.8 bn. The board approved an interim dividend of AED 0.24 per share for the first half of the year, representing a 20% increase y-o-y. The firm now sees revenues growing 6-8% this year, upgrading its guidance for 2025 on the back of the strong growth in 1H.

ADVISORS- First Abu Dhabi Bank, Emirates NBD Capital, Goldman Sachs, and Abu Dhabi Commercial Bank are acting as joint lead managers, with Linklaters, Clifford Chance, White and Case, and Al Tamimi and Co providing counsel.

Receiving agents: Emirates NBD is the lead receiving bank. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al Maryah Bank Community Bank, Dubai Islamic Bank, Emirates Islamic Bank, FAB, and Wio Bank have also been appointed as receiving banks.

Du is active in data centers + AI projects: Du, which raised AED 2.4 bn in a 2006 IPO, unveiled a string of tech milestones last month. The state-owned telco announced plans to build the first Arabic large language model tailored for the telecoms industry with partners including Microsoft and Khalifa University. The firm also tapped Turner and Townsend to manage its planned AED 2 bn hyperscale data center in Dubai, which will host Microsoft as an anchor tenant.