Tecom Group to list 12.5% ​​of its shares on the Dubai Financial Market

Tecom Group of Dubai, a member of the Dubai Holding Group, has announced its intention to make an initial public offering (IPO) and list its ordinary shares for trading on the Dubai Financial Market (DFM).

Tecom Group, owner, manager and operator of 10 business districts in Dubai, will introduce 625,000,000 ordinary shares, representing 12.5% ​​of the group’s issued share capital.

The Global Offering will be made available to individual and other investors and eligible employees of Dubai Holding Group under the UAE Retail Offering; and to professional investors and other investors in a number of countries outside of the United States, including the United Arab Emirates, under the Qualified Institutional Offer and the Exempt Offer.

The Qualified Institutional Offer and Exempt Offer subscription period is expected to run from June 16 to June 24, 2022, while the Retail Offer subscription period will run from June 16 to June 23. The scheduled date for the admission of the shares to the DFM is July 5.

The Selling Shareholder reserves the right to change the size of the offering at any time prior to the end of the subscription period, subject to applicable UAE laws and the approval of the Securities and Commodities Authority.

Tecom Group intends to adopt a semi-annual dividend distribution policy to pay cash dividends after the offering in October and April each year, subject to required approvals. The company plans to pay a dividend of Dhs 800 million per year over the next three years (until October 2025), according to a statement.

Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, Morgan Stanley & Co. International and UBS, London Branch have been appointed as global coordinators and joint bookrunners. Meanwhile, Emirates NBD Bank has been appointed as the lead receiving bank.

Abu Dhabi Islamic Bank, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank and Sharjah Islamic Bank have also been named as receiving banks.

Amit Kaushal, Group Managing Director of Dubai Holding, said: “We believe Tecom Group is ready to start a new chapter as a publicly listed company. By remaining the company’s ultimate holding company, we will remain fully committed to working alongside the new shareholders of TECOM Group to support its growth ambitions and further strengthen its role as a key enabler of Dubai and the knowledge-based economy of the region.

It is the second listing on DFM in 2022, after utility Dubai Electricity & Water Authority (DEWA), which raised $6.1 billion in the world’s second-largest initial public offering this year. The IPO valued DEWA at $33.8 billion.

Read: Dubai utilities rise after successfully completing second-biggest IPO of the year

Last year, Dubai announced the listing of 10 government and public companies on the DFM as part of the acceleration of new listings in various sectors including energy, logistics and retail.

Read: Dubai announces listing of 10 public companies on DFM

IPOs in the region raised $13.4 billion in the first five months of the year, already eclipsing the amount raised in any other first half, according to data compiled by Bloomberg To display.

With contributions from Bloomberg

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