Tecom Group, a member of the Dubai Holding group and owner, manager and operator of 10 strategic, sector-focused business districts across Dubai, today announced its intention to proceed with an initial public offering (IPO) and to list its ordinary shares for trading on Dubai Financial Market (DFM).
The company said 625 million ordinary shares will be made available in the global offering, representing 12.5% of Tecom Group’s issued share capital.
The offering comprises the Qualified Institutional Offering, the Exempt Offer, and the UAE Retail Offer.
The Qualified Institutional Offering and the Exempt Offer subscription period is expected to run from June 16 to 24; The UAE retail offer subscription period is expected to be from June 16 to 23.
The shares are anticipated to be listed for trading on the DFM on July 5, it said.
The statement said DHAM (Dubai Holding Asset Management) reserves the right to amend the size of the offering at any time prior to the end of the subscription period, subject to the approval of the SCA. DHAM is Tecom Group’s majority shareholder and Dubai Holding is its ultimate holding company.
The Internal Sharia Supervision Committees of Emirates NBD Bank and First Abu Dhabi Bank have issued pronouncements confirming that, in their view, the offering is compliant with Shariah principles, said the statement.
Amit Kaushal, Dubai Holding Group Chief Executive Officer, said: “As Dubai Holding’s primary commercial development and leasing business, Tecom Group has helped execute our key role in diversifying Dubai’s economy and driving innovation and business growth and development. We have supported its growth into a successful creator of innovative business ecosystems and a partner of choice for multinational businesses as well as entrepreneurs in the region.
“We believe Tecom Group is ready to embark on a new chapter as a publicly listed company. By remaining the ultimate holding company of the Company, we will remain fully committed to working alongside TECOM Group’s new shareholders to support its growth ambitions and further bolster its role as a key enabler of Dubai and the region’s knowledge-based economy.”
Malek Al Malek, Chairman of Tecom Group (from Listing), said: “Our visionary leadership has consistently set new objectives in business excellence and competitiveness consolidating Dubai’s global position as a leading business and talent hub. For more than two decades, Tecom Group has been the cornerstone of these ambitions, contributing to the nation’s knowledge economy by attracting global companies and skilled talent across six key sectors as well as boosting the ease of doing business. Our company has succeeded in establishing a vibrant environment that enables existing and prospective customers to amplify their growth ambitions while evolving at pace with global industries and the future of the workplace.
“With our intention to list on DFM we are expanding our contribution to Dubai’s financial market and bolstering our vision to further unlock the Emirate’s economic and business growth potential. The IPO offers investors a unique opportunity to be part owners of a company that is benefiting from Dubai’s attractive underlying macroeconomic, industry, and business dynamics.”
Abdulla Belhoul, TECOM Group Chief Executive Officer, said: “At Tecom Group, we have continuously delivered on our role as a strategic business enabler of Dubai by bringing to life 10 world-class, vibrant, specialised business districts. Our commitment to digital transformation and ensuring a seamless customer journey sets us apart, providing advanced solutions to over 7,800 customers and more than 100,000 professionals.
“By being at the forefront of innovation and identifying high-growth industries and working models of the future, we have continuously grown our asset base and established strong customer loyalty. From 2021 up until the first quarter of 2022, Tecom Group achieved major milestones including the inauguration of regional headquarters, state-of-the-art higher education campuses, and research and development centres. Our track record demonstrates confidence in the company and reaffirms Dubai’s leading role as the go-to destination for businesses looking to tap into new opportunities.
“As Tecom Group embarks on its next chapter of growth through the IPO, we intend to continue to support the development of business ecosystems and strategic sectors in Dubai, while maximising synergies across these ecosystems and driving new opportunities in the high-growth industry segments Dubai has to offer.”
Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, Morgan Stanley & Co. International and UBS AG, London Branch have been appointed as Joint Global Coordinators and Joint Bookrunners for the issue.
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 been appointed as Receiving Banks. -TradeArabia News Service
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