TECOM Group successfully completes its IPO, raising AED 1.7 billion, with total demand surpassing AED 35 billion

TECOM Group, a member of the Dubai Holding group and owner, manager and operator of 10 strategic, sector-focused business districts across Dubai, today announces that, following the completion of the book building and subscription process for its initial public offering (“IPO”) on 24 June 2022, it has set the final offer price for its IPO at AED 2.67 per share.

The Global Offering drew substantial demand from both the Qualified Institutional Offer and UAE Retail Offer (as defined in the International Offering Memorandum) with total gross demand reaching AED 35.4 billion, implying an oversubscription level of over 21 times in aggregate at the final price. The UAE Retail Offer achieved an oversubscription level of almost 40 times in aggregate, making it the highest oversubscription multiple ever for IPOs on the Dubai Financial Market (“DFM”). As a result of the extremely strong demand, the final offer price was set at the top of the price range and the Company has raised AED 1.7 billion through the IPO.

Malek Al Malek , Chairman of TECOM Group (from listing), said: “The tremendous demand we drew both locally and internationally for the TECOM Group IPO, especially amid challenging market conditions, is testament to the Company’s appealing value proposition and growth prospects. Investors’ strong appetite is underpinned by their optimism toward Dubai’s economy and confidence in the Emirate’s capital markets. We are incredibly proud to have received the highest ever oversubscription multiple in the retail tranches for any IPO on the DFM, demonstrating the trust that this important investor base has in TECOM Group as an investment. It is also a strong validation of the Company’s reputable market position as a strategic enabler of knowledge-based sectors in the Emirate.”

As previously announced, the Global Offering comprised an offering of 625 million (625,000,000) ordinary shares, representing 12.5% of TECOM Group’s issued share capital, all of which is expected to be listed on the DFM on or around 5 July 2022. Upon listing the Company will have an implied market capitalization of AED 13.4 billion and DHAM LLC will continue to own a majority 86.5% stake in the Company (or 87.5% together with DHAM FZ-LLC).

TECOM Group is expected to commence trading under the symbol “TECOM” and ISIN “AEE01081T004”.   Investors that participated in the UAE Retail Offering will be notified of their allocation of shares via SMS on 29 June 2022.