Tecom IPO on cards to list on Dubai Financial Market

The Group has portfolio of 10 business parks where around 6,500 businesses employ a total workforce of 95,000



Photo: File
Photo: File
by

Muzaffar Rizvi

Published: Tue 7 Dec 2021, 8:07 PM

Last updated: Thu 9 Dec 2021, 4:45 PM

Tecom Group will be the latest entrant to list on the local stock market after Dewa and Salik road toll system, according to Dubai Media Office.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, said Tecom Group will be listed on the DFM.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, issued the directive to list Tecom Group on the DFM after the Dewa and Salik road toll system.

“Dubai is planning an initial public offering of business park operator Tecom Group on the Dubai Financial Market (DFM). The listing is part of plans to increase the size of the DFM to Dh3 trillion, or $816.84 billion,” the emirate’s Media Office said on Tuesday.

Tecom Group, which is a part of Dubai Holding, has a portfolio of 10 business parks where around 6,500 businesses employ a total workforce of 95,000. Its business communities include Dubai Internet City, Dubai Media City, Dubai Design District and Dubai Industrial City.

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Wael Makarem, senior market strategist for Mena region at Exness, said the announcement of Tecom’s listing on the DFM could send the general index near or beyond its recent peak as it could draw new liquidity and entice investors to take risks.

“The initiative could boost investors’ confidence in the strength of the market and its ability to flourish,” Makarem told Khaleej Times on Tuesday.

The listing is a part of the strategy of the Dubai Securities and Exchange Higher Committee who is keen to increase the size of the stock market in the emirate to Dh3 trillion in the coming period.

Earlier, the government announced plan to list 10 state-backed companies on Dubai Financial Market to increase liquidity in the market. The government also said it plans to set up a Dh2 dirham market maker fund to encourage more private companies to list on the local bourses.

Who comes next

Analysts said the latest announcement is in line with the government initiative aimed at making Dubai a more competitive market against bigger bourses in the region that are seeing larger listings and strong liquidity.

Inside market sources earlier told Khaleej Times that Dubai government will also disclose the names of the remaining seven state-backed companies in due course of time. “The government has developed some reputable brands over a period of time. Emirates airline, flydubai, dnata, Roads and Transport Authority (RTA), Enoc, and Jumeirah are some of the potential candidates for listing on the DFM and can attract investors,” sources said.

Dubai leads major Gulf bourses higher

Meanwhile, Dubai on Tuesday led major Gulf bourses higher as Omicron fears eased after the announcement of the top US infectious disease expert Dr Anthony Fauci, who said new variant “does not look like there’s a great degree of severity” so far.

Dubai’s main share index advanced 0.96 per cent, boosted by a 2.5 per cent rise in blue-chip developer Emaar Properties.

Farah Mourad, senior market analyst at XTB Mena, said the Dubai stock market continues moving to the upside as an optimistic sentiment takes over and omicron fears subside.

“The market remains supported by favourable expectations among investors as they expect the 
announced IPOs to drive volumes and liquidity higher. The DFM is also benefitting from the 
positive developments in non-oil sectors,” Mourad told Khaleej Times on Tuesday.

muzaffarrizvi@khaleejtimes.com


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