TECOM Group has revealed the price range of its initial public offering (IPO), as well as the start dates for the subscription period, as it looks to list 12.5 percent of its share capital – approximately 625 million shares – on the Dubai Financial Market (DFM).
Dubai’s Tecom Group, the operator of 10 business districts across the emirate, has set the price offer range of its initial public offering (IPO). A total of 625,000,000 shares, equivalent to 12.5 percent of Tecom Group’s issued share capital, will be offered. The IPO is expected to raise proceeds from Dhs1.5bn ($419m) up until Dhs1.7bn ($454m). The price range implies a market capitalization of between $3.4 billion and $3.6 billion.
Dubai Holding Asset Management (DHAM), which is the selling shareholder, will reserve the right to amend the size of the global offering at any time before the end of the subscription period at its sole discretion, subject to the applicable laws of the UAE and the approval of the SCA.
The IPO subscription period starts on Thursday, June 16, 2022, and runs until 23 June 2022 for the UAE retail offering, while the qualified investor offering begins on 24 June 2022. The final offer price will be determined through a book-building process and is expected to be announced on June 27, 2022. Admission of shares to trade on the DFM is expected on July 5, 2022.
The global offering is available to the following subscribers:
- To individual and other investors and Dubai Holding Group’s eligible employees as part of the UAE retail offer; and
- To professional investors and other investors in several countries, including in the UAE, as part of the qualified institutional offering and the exempt offer
Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, Morgan Stanley, and UBS AG are joint global coordinators and book-runners for the IPO. 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 appointed as receiving banks.
On 15 June 2022, the company entered into cornerstone investment agreements with the UAE Strategic Investment Fund and Shamal Holding LLC, which have committed to purchasing shares in the qualified investor offering at the offer price. Shamal Holding LLC is a Dubai-based investment firm that manages a diversified portfolio of investments strategically aligned with Dubai’s economic growth ambitions. The UAE Strategic Investment Fund and Shamal Holding will be cornerstone investors in the IPO with a total commitment of Dhs283.75m ($77.25m). Dubai announced the listing of 10 government and state-owned companies on the DFM last year, with the emirate aiming to increase the total volume of its stock markets to Dhs3tn.