The UAE-based telecom operator Emirates Integrated Telecommunications Company (listed as “du” on the Dubai Financial Market) has launched a large secondary share offering as its major shareholder, the Mubadala Investment Company subsidiary Mamoura Diversified Global Holding, reduces its stake in the business. Reuters+2Gulf News+2
In a formal announcement, du disclosed that Mamoura intends to sell up to 342 million shares, representing approximately 7.55 % of the company’s share capital, and roughly 75 % of Mamoura’s existing holding in du. Reuters+1 The shares are being offered in a price range of AED 9.00 to AED 9.90 per share, with the final price to be determined via a book-building process. Finance Middle East At the high end of that range, the transaction could raise around AED 3.39 billion (approx. US $923 million). Reuters
The deal is structured as a secondary offering, meaning the shares sold are existing shares held by Mamoura, and the proceeds go to Mamoura rather than to du. du du has noted that the sale will boost its “free float” (the portion of shares held by public investors) and is expected to broaden its investor base and improve liquidity in its shares.
The allocation for the offering is set out in two tranches: 5 % of the offer is reserved for local UAE retail investors, while the remaining 95 % is directed at institutional and international qualified investors. du+1 The subscription window opened on 8 September 2025. Gulf News
du has indicated that increasing its free float is part of a broader strategy to enhance liquidity and investor access, which in turn may support its inclusion in major international indices—a move that could further raise its global profile. AInvest Analysts point out this fits a growing trend in the Middle East where large firms are pursuing secondary sales to tap investor demand and reshuffle shareholder structures. Reuters+1
For du, the transaction offers multiple benefits: it brings more shares into active trading, potentially reduces volatility, and may attract foreign institutional investors who often seek higher-liquidity stocks. The broader investor base can also imply greater market confidence in the company’s governance and growth trajectory.
Mubadala’s motive for selling is described as “responsible reallocation of capital”—in other words, the reduction is strategic rather than distressed. Reuters The move gives Mubadala flexibility to redeploy capital into other opportunities while allowing du to benefit from improved investor access and public float.
From Mamoura’s perspective, the sale of a significant portion of its holdings enables monetising a mature investment while still maintaining a stake. The fact that this is a well-communicated offering rather than a surprise dump may reassure the market.
du has been showing solid operational performance in recent periods. For example, its six-month results and other recent disclosures reflect growth in mobile and broadband segments. Gulf News With the economy of the United Arab Emirates remaining relatively robust, capital markets are active and investor sentiment remains favourable. The offering draws on that positive momentum.
That said, because this is a secondary offering (and not new shares issued by the company), the company’s capital structure is not being diluted—in theory a positive for existing shareholders. On the flip side, the sale by a major shareholder may raise questions in the market about future growth prospects or about why the stakeholder is reducing its holding—though in this case the explanation from Mubadala emphasises strategic redeployment rather than weakness.
While the secondary offering is structurally clean, some aspects warrant monitoring:
This transaction can be viewed as a milestone for the UAE equity market. du describes it as its “first-ever fully marketed secondary public offer” in the UAE. du Similar deals have been gaining traction in the region—such as recent offerings by ADNOC Logistics & Services and other major state-linked entities.
The move helps strengthen the case for UAE-listed companies to attract global capital, enhance governance, and integrate with global indexes. For investors, the deal offers an opportunity to participate in a major UAE-based telecom player with increased public float and a formal offering structure.
In summary, du’s launch of the secondary offering via Mubadala’s reduction of stake represents a carefully crafted capital-markets move—one that maximises investor access, enhances liquidity, and aligns with du’s ambitions for broader international recognition. Existing shareholders may view the outcome favourably (no dilution, greater liquidity), while new investors get a chance to participate in a high-profile UAE telecom offering. As always, the proof will lie in execution: final pricing, aftermarket trading behaviour and how the company uses enhanced market visibility to fuel its next phase of growth.
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