Du raises US$272 million through rights issue

The UAE’s Du has raised AED 1 billion (US$272 million) through the completion of the company’s previously announced rights issue. The capital will be deployed to transform the operator from a high growth early stage venture to a more mature company with efficient management of future funding requirements.

A total of 571,428,571 new shares were offered to and taken up by qualifying shareholders on a pro rata basis. The founding shareholders took up their rights in full, while public shareholders oversubscribed for their portion of the rights issue. The number of Du shares in issue increases to 4,571,428,571, with trading of new shares expected to begin on June 27.

"We are very pleased with the take-up of the rights issue and the extent of the support we have received from our shareholders. This is a clear demonstration of their belief in our performance and growth strategy. Our focus remains on delivering on our plans to become the UAE‘s preferred integrated telecommunications provider," stated Osman Sultan, chief executive officer of Du.