Du completes AED1bn rights issue

UAE-based telecoms operator Du has said it has successfully completed a rights issue that raised AED1 billion (USD272 million), ArabianBusiness reports. The company said in a statement to the Dubai bourse that the rights issue was oversubscribed by public shareholders and will be used to finance the operator’s growth plans. The number of Du shares will increase to 4,571,428,571 and trading in them is expected to start on or around 27 June. Osman Sultan, CEO of Du, commented: ‘We are very pleased with the take-up of the rights issue and the extent of the support we have received from our shareholders. Our focus remains on delivering on our plans to become the UAE’s preferred integrated telecommunications provider.’ The move forms part of a larger investment plan for 2010, aimed at ‘transforming the company from a high growth early stage venture to a mature company with efficient management of future funding requirements.’ According to TeleGeography’s GlobalComms Database, Du is 80% is owned by its founder shareholders; the Ministry of Finance owns 40%, with the Abu Dhabi Mubadala Development Company and Tecom Investment (a government investment body) owning 20% each. The remaining 20% was purchased by private Emirati investors following an IPO in April 2006.