Dubai’s Tecom Group sets IPO price range at Dhs2.46-2.67

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) at between Dhs2.46 and Dhs2.67 per share.

A total of 625,000,000 shares, equivalent to 12.5 per cent 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).

Read: Tecom Group to list 12.5% of shares on Dubai Financial Market

The IPO subscription period starts today and runs until June 23, 2022 for the UAE retail offering and until June 24, 2022 for the qualified investor offering. Dubai Holding Asset Management, the selling shareholder, reserves the right to increase the size of the global offering.

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.

TECOM Group’s UAE Retail Offering is now open for subscription. Price range is between AED 2.46 to AED 2.67 per share. Read more here: https://t.co/44lpBVk1Fa pic.twitter.com/7Wbh10psvq

— TECOM Group (@TECOMGroupDubai) June 16, 2022

The global offering shall be made available to individual and other investors and to Dubai Holding Group eligible employees as part of the UAE retail offer; and to professional investors and other investors in a number of countries outside the US, 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 & Co. International plc and UBS, London Branch have been appointed as joint global coordinators and joint bookrunners. Meanwhile, Emirates NBD Bank has been appointed as the lead receiving bank. 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.

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.

Read: Dubai announces listing of 10 govt, state-owned companies on DFM

Earlier this year, Dubai Electricity and Water Authority (DEWA) was the first government entity to list on the DFM, raising $6.1bn in what was the biggest IPO in Europe and the Middle East in more than two years.

Read: Dubai’s DEWA raises $6.1bn in EMEA’s biggest IPO since 2019