Du Share Sale Expands Free Float Ahead Of Book-Build - Arabian Post

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du is offering up to 342 million shares-equating to 7.55 per cent of its share capital and roughly three-quarters of Mamoura's holding-to the public under a secondary offering that boosts liquidity and investor access. The shares are priced between AED 9.00 and AED 9.90, with the final offer price announced via a book-building process set for 15 September.

This sale, orchestrated entirely by Mamoura Diversified Global Holding, a subsidiary of Mubadala Investment Company, involves existing shares only; thus du will receive no proceeds. The two-tranche offering allocates 5 per cent to UAE retail investors who hold a National Investor Number on the Dubai Financial Market, while the remaining 95 per cent is reserved for qualified institutional investors at home and abroad.

An earlier headline summarised the offer as a bid to“expand investor base and stimulate liquidity.” That notion is echoed here with an alternative phrase-“du sale widens investor base and trading scope”-underscoring the strategic intent behind this sale.

The offering is expected to generate up to AED 3.39 billion if priced at the top of the range.

du and Mamoura emphasise that increasing the free float strengthens the company's market profile and may pave the way for inclusion in international indices. Mubadala frames the divestment as a responsible reallocation of capital, aligning with its broader mandate to support national economic development.

The retail tranche opened on 8 September and closes on 12 September, while the institutional tranche follows the same timeline. Allocation mechanics include a minimum application size of AED 5,000, increments of AED 1,000, and a guaranteed allocation of up to 500 shares for retail applicants. Institutional settlement is scheduled for mid-September, with trading to commence shortly thereafter.

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For perspective, this move reflects a broader trend across the region. Similar secondary offerings by major state-linked entities-such as Saudi Aramco and ADNOC subsidiaries-highlight increasing utilisation of capital markets to recalibrate shareholder structure and enhance market engagement.

Providers including Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, and Goldman Sachs International serve as joint global coordinators and bookrunners. Emirates NBD is leading the retail distribution effort alongside other banking partners.

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