Dubai Holding Asset Management’s Tecom Group is listing 12.5 percent of shares in an initial public offering on the Dubai Financial Market as the regional IPO boom continues.
Dubai Holding will sell 625 million shares in Tecom Group with the qualified institutional, exempt and the UAE retail offers to run from 16 to 23 June, the Group said in a statement.
“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,” said Amit Kaushal, Dubai Holding group chief executive officer.
“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,” he continued.
The expected date of listing on the Dubai stock exchange is July 5 with lead managers including Emirates NBD Capital and First Abu Dhabi Bank.
“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,” said Malek Al Malek chairman of Tecom Group.
“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,” he continued.
Tecom’s float comes at a time when the Middle East is enjoying an unprecedented listings boom fuelled by high oil prices, equity inflows and a drive by regional governments to list state-owned assets.
IPOs in the region have raised $13.4 billion in the first five months of the year, already eclipsing the amount raised in any other first half, data compiled by Bloomberg show.
“At Tecom Group, we have continuously delivered on our role as a strategic business enabler of Dubai by bringing to life ten 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,” said Abdulla Belhoul, Tecom Group CEO.
“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,” he continued.
Dubai last year, unveiled a plan in November to list 10 state firms in a bid to revive trading volumes and boost liquidity.
The first of those privatisations was the $6.1bn IPO of Dubai Electricity & Water Authority (DEWA), in April. That listing was the world’s second-biggest this year and drew overwhelming demand from both regional and international investors.
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