Following the completion of the book building and subscription process for its initial public offering (IPO) on June 24, TECOM Group, the owner and operator of ten sector-focused business districts throughout Dubai, said that it has set the final offer price for its IPO at Dhs2.67 per share.
The global offering drew substantial demand from both the qualified institutional offer and UAE retail offer, with total gross demand reaching Dhs35.4bn, suggesting an oversubscription level of over 21 times in aggregate at the final price.
The UAE retail offer achieved an oversubscription level of almost 40 times in aggregate, making it the highest oversubscription multiple ever for IPOs on the Dubai Financial Market.
Based on the demand, the final offer price was set at the top of the price range and the company has raised Dhs1.7bn through the IPO.
Malek Al Malek, chairman of TECOM Group, said: “The tremendous demand we drew both locally and internationally for the TECOM Group IPO, especially amid challenging market conditions, is testament to the company’s appealing value proposition and growth prospects. Investors’ strong appetite is underpinned by their optimism toward Dubai’s economy and confidence in the emirate’s capital markets. 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 as an investment.”
The company had earlier announced that the global offering comprised an offering of 625 million (625,000,000) ordinary shares, representing 12.5 per cent of TECOM Group’s issued share capital, which is expected to be listed on the DFM on or around July 5.
Once listed, the company will have an implied market capitalisation of Dhs13.4bn and DHAM (Dubai Holding Asset Management) will continue to own a majority 86.5 per cent stake in the company (or 87.5 percent together with DHAM).
TECOM Group is expected to commence trading under the symbol ‘TECOM’ and ISIN ‘AEE01081T004’.
Investors who participated in the UAE retail offering will be notified of their allocation of shares via SMS on June 29.
