The Emirates Integrated Telecommunications Company(“EITC”) public share sale was 167 times oversubscribed with total applications of more than AED400 billions. According to the investment banker EFG-Hermes, this is the largest amount collected in the history of IPOs in the UAE. More than 225,000 investors have applied for shares including about 15,000 UAE national teachers, who will each receive 3,000 shares under the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai. The allocation of shares to other UAE national investors has yet to be completed, pending finalisation of the audit of applications received and is expected to be announced later this month.

 

The shareholders of EITC, which will trade under the brand du, made 20percentage of their shareholding (800 million shares) available at a price of AED3.03 per share. The initial offer was only open to UAE nationals, however, all UAE residents will be able to buy shares as soon as they are listed on the Dubai Financial Market which will be before 13 April 2006.

 

EITC chairman Ahmad bin Byat said the tremendous response showed how much faith the people of the UAE had in du and how welcome the arrival of a second telecommunications company was.

 

“du will play an important role in the economy of the UAE. We aim to have 30percentage of the telecommunications market within three years and will look to create optimal value for our shareholders through business excellence and innovation,” said Mr bin Byat.

 

EFG-Hermes has appointed Emirates Bank International and First Gulf Bank as lead manager and co-lead manager to the offering, respectively. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Bank, Dubai Islamic Bank, Emirates Financial Services, Emirates Islamic Bank, Finance House, Mashreqbank. National Bank of Abu Dhabi, National Bank of Dubai and Union National Bank will also acted as Receiving Banks.