What's Happening?
The Abu Dhabi Investment Authority (ADIA) is planning to sell approximately half of its stake in Ooredoo Group, a telecommunications operator, on the Qatar Stock Exchange. This transaction involves the sale of 160.5 million shares, which will reduce ADIA's
holding to about 5%. The sale is expected to generate between QAR1.99 billion and QAR2.09 billion (US$546 million to US$572 million). Ooredoo CEO Aziz Aluthman Fakhroo stated that this move is intended to broaden the operator's shareholder base and improve liquidity in its publicly traded shares. Ooredoo operates in nine markets across the Middle East, Southeast Asia, and North Africa, and has reported a 6% year-on-year increase in net profits for the first nine months of the year.
Why It's Important?
ADIA's decision to offload a significant portion of its stake in Ooredoo is a strategic move to enhance the company's shareholder base and increase liquidity. This transaction is notable as it represents the first of its kind in Qatar, potentially setting a precedent for future investments and share sales in the region. By diversifying its shareholder base, Ooredoo aims to attract more investors and improve the trading volume of its shares. This could lead to increased market confidence and potentially drive further investment in the telecommunications sector, which is crucial for economic growth and technological advancement in the regions where Ooredoo operates.
