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14 July 2021
The deal represents a landmark equity capital market transaction for Abu Dhabi, as it is the first IPO since 2017
(Abu Dhabi) 14 July 2021
EFG Hermes, the leading financial services corporation in Frontier Emerging Markets (FEM), announced today that its Investment Banking division successfully completed advisory to Mubadala–owned Al Yah Satellite Communications (Yahsat), a leading fixed and mobile satellite services operator in the United Arab Emirates (UAE), on its AED 2.7 billion initial public offering (IPO) on the ADX — the first on the exchange since 2017.
The IPO saw Yahsat offer 975.9 million shares (representing 40% of the share capital) to institutional and retail investors at an offer price of AED 2.75 per share. EFG Hermes acted as joint bookrunner on the IPO, with Yahsat beginning to trade today under the stock symbol YAHSAT.
Mohamed Fahmi, EFG Hermes’ Co-Head of Investment Banking commented: “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. 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 USD 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 wholly-owned subsidiary of Mubadala Investment Company (Mubadala), 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. Mamoura Diversified Global Holding (the selling shareholder), a wholly owned subsidiary of Mubadala, will remain the majority shareholder following the offering, retaining 60% of Yahsat’s issued share capital.
Moustafa El-Chiati, CEO of EFG Hermes UAE said: “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. 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 Firm’s Investment Banking team, which closed a record 16 transactions so far worth USD 2.2 billion, 5 DCM transactions worth USD 194 million, 5 ECM transactions worth USD 1.1 billion and 5 M&A transactions worth USD 903 million. Today, the Firm has execution capabilities across more than 75 FEMs, representing all of the markets under the MSCI FEM index, with a direct presence in 13 jurisdictions serving global institutional investors, regional high-net-worth individuals, and retail investors.
Earlier this year, EFG Hermes was named the Best Investment Bank in Frontier Markets as well as Best Debt Bank in Africa by Global Finance magazine. Additionally, the Firm won the “Sukuk Deal of the Year” by Global Finance in the World’s Best Islamic Financial Institutions Awards 2021. It also received acclaim from the first-ever Saudi Capital Market Awards (SCMA), winning the title of “Most Notable Listing” for the Dr. Sulaiman Al Habib Medical Services Group successful listing on the Saudi Stock Exchange (Tadawul) in 2020.
About EFG Hermes
With a current footprint spanning thirteen countries across four continents, EFG Hermes started in Egypt and has grown over 37 years of success to become a leading financial services corporation with access to emerging and frontier markets. Drawing on our proven track-record and a team of more than 5,500 talented employees, we provide a wide spectrum of financial services that include investment banking, asset management, securities brokerage, research and private equity to the entire MENA region.
In 2015, EFG Hermes launched its Non-Bank Financial Institutions (NBFI) Platform, which overlooks activities in the non-banking finance field covering microfinance, leasing, factoring, consumer finance, mortgage and insurance. This falls in line with the Firm’s strategy to focus on two main pillars: product diversification and geographic expansion into non-MENA markets, which has seen the Firm establish a physical presence in Pakistan, Bangladesh, Vietnam, Kenya, Nigeria, the United Kingdom and the United States.
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Note on Forward-Looking Statements
In this press release, EFG Hermes may make forward looking statements, including, for example, statements about management’s expectations, strategic objectives, growth opportunities and business prospects. These forward-looking statements are not historical facts but instead represent only EFG Hermes’ belief regarding future events, many of which, by their nature are inherently uncertain and are beyond management’s control and include among others, financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending and future legislation, regulations and regulatory actions. Accordingly, the readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made.