TECOM Group, a subsidiary of Dubai Holding, on Thursday announced the price range of the offering share and the start of the initial public offering period on the Dubai Financial Market.
The price range for the global subscription share has been set between $0.67 and $0.73 per share. The company will offer 625 million shares for public subscription, representing 12.5% of the total issued shares in the capital of the group.
The Group owns, manages and operates ten specialized business parks focused on vital sectors and is a key contributor to the development of knowledge-based sectors in Dubai.
Dubai Holding Asset Management, the selling shareholder, retains the right to increase the size of the global offering at any time before the end of the subscription period, in accordance with the laws of the UAE and under the approval of the Securities and Commodities Authority.
The total global offering is expected to range between $419 million – $454 million, which means that the market value of the group upon listing will range between $3.4 billion and $3.6 billion.
For individual subscribers, other investors, and eligible Dubai Holding Group employees (as described in the prospectus for the public offering of shares for individuals in the UAE), as part of the individual subscription in the Emirates.
For professional investors, and other investors in a number of countries, including in the UAE, as part of the subscription of qualified institutional buyers and the exempt offering.
The subscription period for retail investors in the UAE begins on Thursday (16 June 2022) today and ends on 23 June 2022, while the subscription period for qualified investors will end on 24 June 2022. The shares are expected to be listed and traded on the Dubai Financial Market on 5 July 2022, depending on market conditions and the approvals of the relevant UAE regulatory authorities, including the approval to list and trade the group’s shares on the Dubai Financial Market.
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 and, subscribers.
Emirates NBD Bank has also been appointed as the lead receiving bank, in addition to Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, and Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, and Mashreq and Al-Shareq Islamic Bank as receiving banks.
On Wednesday (15 June 2022), TECOM Group entered into primary investment agreements with the UAE Strategic Investment Fund and Shamal Holding LLC, who committed to invest around $77.25 million in the public offering. The shares owned by both primary investors will be subject to a 180-day trading ban period, following the listing of the company.
Following the announcement of Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, of the listing of 10 companies on the Dubai Financial Market, the UAE Strategic Investment Fund was established to serve as a strategic investor focused on investments Long-term initial public offerings in Dubai.
It is a separate portfolio of Emirates NBD AM SPC managed by Emirates NBD Asset Management, one of the largest and most prestigious asset managers in the Middle East with a proven track record of investments in listed equities and other asset classes in the MENA region through separate mandates and mutual funds.
Shamal Holdings is a Dubai-based investment company that manages a portfolio of diversified investments in line with the strategic directions of the Emirate of Dubai to build a strong national economy.