The Abu Dhabi Investment Authority will sell 160.5 million of its existing shares in Qatari telecommunications company Ooredoo, around half of its shareholding, in a secondary share offering, Ooredoo said on Monday.
The offer price range for the share sale is set at between 12.4 Qatari riyals and 13 riyals per share, with an implied deal size of between 1.99 billion and 2.09 billion riyals ($546 million to $572 million), according to a term sheet from a coordinating bank seen by Reuters.
ADIA, headquartered in the United Arab Emirates’ capital, is one of the world’s biggest sovereign wealth funds. It currently holds a 10% stake in Ooredoo.
Ooredoo will not receive any proceeds from the sale.
“By launching this offer – the first transaction of its kind in Qatar – ADIA is enabling an important step to broaden Ooredoo’s shareholder base and enhance our shares’ liquidity on the Qatar Stock Exchange,” said Ooredoo CEO Aziz Aluthman Fakhroo in a statement.
Ooredoo has operations across the Middle East, North Africa, and Southeast Asia, and is listed on both the Qatar and Abu Dhabi exchanges.
The company reported net profit of 3.1 billion riyals in the first nine months of the year, up 6% year-on-year. Revenue was up 3% in the same period, rising to 5% after excluding the impact of its Myanmar exit.
Citi, HSBC, and Qatar National Bank are mandated joint global coordinators and bookrunners on the deal. Books are due to open on November 18, with pricing and allocation to follow on November 19 and trading to begin November 20.
Reuters
