In a significant capital markets move, the Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, has announced its intention to sell a 5% stake in Qatari telecommunications leader Ooredoo. The secondary offering will see ADIA divest approximately half of its total shareholding in the company.
Details Of The Landmark Offering
The transaction involves the sale of 160.5 million shares. According to a term sheet from a coordinating bank, the offer price is set between QR12.4 and QR13 per share.
This price range implies a total deal size of between QR1.99 billion and QR2.09 billion, which translates to approximately $546 million to $572 million. Ooredoo has confirmed that it will not receive any proceeds from the sale, as it is a secondary offering of existing shares held by ADIA.
The deal is being managed by a syndicate of major financial institutions, with Citi, HSBC, and Qatar National Bank appointed as joint global coordinators and bookrunners. The books for the offering are scheduled to open on November 18, with pricing and allocation to follow on November 19 and trading commencing on November 20.
A Strategic Move For Market Liquidity
The sale is being positioned as a positive development for Ooredoo’s stock, aiming to increase its free float and trading volume on the Qatar Stock Exchange.
“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 Aziz Aluthman Fakhroo, CEO of Ooredoo, in a statement.
Ooredoo’s Strong Financial Standing
The divestment comes at a time of solid performance for Ooredoo. The company, which has operations across the Middle East, North Africa, and Southeast Asia, is dual-listed on both the Qatar and Abu Dhabi exchanges.
For the first nine months of the year, Ooredoo reported a net profit of QR3.1 billion, a 6% increase year-on-year. During the same period, revenue grew by 3%, rising to 5% when excluding the impact of its recent exit from the Myanmar market.
About Abu Dhabi Investment Authority (ADIA)
The Abu Dhabi Investment Authority (ADIA) is a globally-diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi. Established in 1976, ADIA manages a substantial global portfolio diversified across more than two dozen asset classes and sub-categories. As one of the world’s largest sovereign wealth funds, it plays a critical role in the global investment landscape.
About Ooredoo
Ooredoo is an international telecommunications company operating in 10 countries across the Middle East, North Africa, and Southeast Asia. Serving consumers and businesses, Ooredoo delivers a leading data experience through a broad range of content and services via its advanced, data-centric mobile and fixed networks.
Source: AGBI
