Dubai plans to offer 12.5% stake in TECOM Group IPO
TECOM Group, a subsidiary of the government-owned Dubai Holding, is planning an initial public offering by offering 625 million shares, which is equivalent to 12.5% shares, in the Dubai Financial Market (DFM). The government plans to raise at least $500 million from the listing.
The TECOM IPO will be the second offering by the Dubai government in 2022 to boost trading volumes and increase liquidity on the exchange. In April, Dubai’s utility giant DEWA raised $6.1 billion in the world’s second-biggest IPO this year.
TECOM Group owns and operates ten specialized business parks focusing on vital sectors in strategic areas in Dubai such as Dubai Internet City, Dubai Outsource City, Dubai Media City, and it is a major contributor to advancing the development of knowledge-based sectors in the emirate.
The group said that the subscription period for individuals in the UAE begins on 16 June 2022 and ends on 23 June 2022, while the shares are expected to be listed and traded on the Dubai Financial Market on 5 July 2022. For eligible institutional buyers, the subscription period is from 16 June 2022 to 24 June 2022.
TECOM Group intends to adopt a policy of distributing semi-annual dividends, as it will pay cash dividends after the global offering, in the months of October and April of each year. In all, the company will distribute a total cash dividend of $217.80 million every year until October 2025).
It is a growing and diversified base of the most important international and regional companies, with long-term strategic relationships. It has attractive financial position and balance sheet backed by a strong portfolio generating stable and high quality cash flows and returns.
In his comments, Amit Kaushal, Group CEO of Dubai Holding, said: “TECOM Group, as the main commercial development and leasing arm of Dubai Holding, has been enabling us to play a major role in diversifying Dubai’s economy. It is driving the growth and establishment of businesses and encouraging innovation, and we were keen to support TECOM Group to become a successful and pioneering developer of integrated and innovative business systems, and the preferred partner for both multinational companies and entrepreneurs in the region.”
He added: “We believe in TECOM Group’s readiness to start a promising phase as a listed company. By retaining the majority stake, we are fully committed to working with the new shareholders to support the company’s expansion and growth aspirations and to consolidate its pivotal role as a key driver for the growth of the knowledge-based economy. in Dubai and the region in general.”
Malek Al Malik, Chairman of TECOM Group, said: “For more than two decades, we have contributed greatly to achieve Dubai’s ambitious aspirations, and has played a prominent role in building the knowledge economy in the country by attracting international companies and the best distinguished talents in six strategic sectors, in addition to enhancing the ease of doing business.”
He further said: “By listing TECOM Group on the DFM, we look forward to expanding our contribution to supporting the financial market in the Emirate, enhancing our efforts to develop targeted vital sectors and consolidating Dubai’s position as a global hub for companies and talent. The IPO represents a unique opportunity for interested investors. By owning shares in a leading company that has all the ingredients and capabilities necessary to continue its path of success and prosperity in vital sectors with promising opportunities.”
Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, Morgan Stanley & Co. International PLC and UBS AG London Branch have been appointed as joint global coordinators and as registry managers. subscribers.
Emirates NBD Bank has also been appointed as the lead receiving bank, in addition to Abu Dhabi Islamic Bank, Ajman Bank and Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank, and Al Sharq Islamic Bank as other banks to receive subscription.