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 TECOM Group’s shares rise marginally on its debut on DFM


TECOM Group’s shares rise marginally on its debut on DFM

The shares of Dubai business park operator TECOM Group rose marginally on the company’s trading debut on the Dubai Financial Market (DFM) on Tuesday.

The shares rose by 1.12% to $0.74 during early trade, compared with the listing price of $0.73. The company, trading under the symbol “TECOM,” has a market capitalisation of about $3.66 billion.

TECOM Group, a subsidiary of the government-owned Dubai Holding, has offered 625 million shares, which is equivalent to 12.5% shares, in the DFM. Though the government expected to raise at least $500 million, it could raise only $463.2 million. However, the IPO was 21 times oversubscribed with total gross demand at more than $9.53 billion.

The UAE Strategic Investment Fund and Shamal Holding are cornerstone investors in the IPO, with a total commitment of $77.25 million.

TECOM on Moon

“We are incredibly proud to have received the highest ever oversubscription multiple in the retail tranches for any IPO on the DFM, demonstrating the trust that this important investor base has in Tecom Group. Investors’ strong appetite is underpinned by their optimism toward Dubai’s economy and confidence in the Emirate’s capital markets,” said Malek Al Malek, Chairman of TECOM Group.

“The tremendous demand we drew both locally and internationally, especially amid challenging market conditions, is testament to the company’s appealing value proposition and growth prospects,” he added.

Ten Business Districts

TECOM operates ten business parks and districts across the Emirate, including Dubai Internet City, Dubai Outsource City and Dubai Media City, which are home to more than 7,800 companies. The districts allow the complete repatriation of profits and employ more than 100,000 people in areas related to non-oil sectors that include technology, media, science, education, design and manufacturing.

It may be recalled that Dubai last year announced plans to list 10 state-owned companies as part of its strategy to double the size of its capital market to $820 billion and attract foreign investment.

The Emirate also unveiled plans to set up a $540 billion market maker fund to encourage the listing of more private companies from sectors such as energy, logistics and retail.

TECOM has a land bank of 375.3 hectares and access to additional land through an exclusive right of first offer with Dubai Holding Asset Management, which serves as a bedrock for future growth.

Global Business Magazine

Global Business Magazine

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