(MENAFN- Khaleej Times)
Published: Thu 9 Jun 2022, 9:30 AM
Dubai on Thursday announced plans to sell a 12.5 per cent stake in Tecom Group through initial public offering and list the company on the Dubai financial market (DFM) by July 5.
It will be the second offering by the government this year to boost trading volumes and increase liquidity on the exchange after the Dubai Electricity and Water Authority (Dewa) listing in April.
Dubai Holding will sell 625 million shares to qualified institutional investors and UAE retail customers. The government is aiming to raise at least $500 million from the listing, Bloomberg quoted people familiar with the matter.
'The qualified institutional offering and the exempt offer subscription period is expected to run from June 16, 2022 to June 24, 2022 while the UAE retail offer subscription period is expected to run from June 16 to June 23, 2022. Admission of shares to trading on the DFM is anticipated on July 5, 2022,' according to the statement issued on Thursday.
The price range will be announced on June 16, the same day when the IPO starts. Emirates NBD Capital and First Abu Dhabi Bank are among the joint lead managers.
'The company is expected to pay a dividend amount of Dh800 million per annum over the next three years,' the statement said.
Amit Kaushal, chief executive officer, Dubai Holding Group, 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,” he said.
Malek Al Malek, chairman of Tecom Group, said his 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,” he said.
Abdulla Belhoul, chief executive officer of Tecom Group, 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,' he said.
From 2021 up until the first quarter of 2022, he said 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,' he said.
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'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 added.
Tecom houses more than 7,500 companies and 10 large business complexes including Dubai Internet City and Dubai Media City. It has been at the forefront of Dubai's economic growth and diversification by building and growing 10 world class, sector-focused business districts strategically located across the Emirate.
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