Dubai's Tecom IPO massively oversubscribed, share price set at Dh2.67

Tecom Group, a subsidiary of Dubai Holding, on Monday said it raised Dh1.7 billion from its initial public offering (IPO), which was oversubscribed 21 times to reach Dh35 billion.

The company, which offered 625 million shares for sale as part of its global offering, set a final share price at the top of the range at Dh2.67, valuing it at Dh13.4 billion. Dubai Holding Asset Management (DHAM) will continue to own a majority 86.5 per cent stake in the company.

The company plans to list on the Dubai Financial Market (DFM) on or around July 5, 2022, under the symbol “Tecom”. Investors participating in the UAE retail offering will be notified of their allocation of shares via SMS on June 29, 2022.

Tecom Group owns and operates ten business districts, home to over 7,800 companies.

Dubai last year announced that it would float 10 public sector entities on the local bourse to improve liquidity and increase its market cap to Dh3 trillion. The Dubai Electricity and Water Authority was the first company to go public, raising Dh22.4 billion.

The emirate had also set up a Dh2 billion market maker fund to encourage other first to list on the local bourse.

Tecom’s offering drew substantial demand from both institutional and retail investors. The UAE retail offer was oversubscribed almost 40 times in aggregate, making it the highest oversubscription multiple ever for IPOs on the DFM.

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The UAE Investment Fund and Shamal Holding were cornerstone investors in the Telcom IPO, making a total commitment of Dh283.7 million.

“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,” said Malek Al Malek, chairman of Tecom Group.

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