Dubai will list 12.5 percent of TECOM Group, the operator of business free zones of more than 7,800 companies, on the Dubai Financial Market (DFM), as part of a slew of initial public offerings of government institutions aimed at increasing the size of the emirate’s capital market.
TECOM Group has officially announced its intention to proceed with an IPO of 12.5 percent of the total issued shares of the company’s capital on the DFM.
Dubai Holding will sell 625 million shares in TECOM, which includes 10 complexes in different locations in Dubai, including Dubai Internet City, Dubai Media City and Dubai Design District, among others.
The price range for the listing will be announced on June 16, the same day the IPO begins. The subscription period for the first and third tranches will extend from June 16 to June 23. The subscription period for the second tranche will extend from June 16 to June 24. The company’s shares will be listed on the Dubai market on July 5.
As for the banks receiving the subscription, they are: Emirates NBD, Ajman Bank, First Abu Dhabi Bank, Mashreq Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates Islamic Bank, Sharjah Islamic Bank, and Commercial Bank of Dubai.
Dubai Electricity and Water Authority (DEWA) was the first government entity to be listed on the Dubai Financial Market. The body, whose shares were listed in April in the largest public offering in the Middle East and Europe since Saudi Aramco went public in 2019, raised 22.41 billion dirhams ($6.1 billion) in its initial IPO.
Timetable for the IPO and listing
June 9, 2022: the date of announcing the intention to list on the Dubai Financial Market.
June 16, 2022: the date of the start of the subscription and the announcement of the price range for the offering.
June 23, 2022: The end date of the subscription period for the first tranche (individual subscribers) and the third tranche (qualified Dubai Holding Group employees).
June 24, 2022: The end date of the subscription period for the second tranche (Professional Investors).
June 27, 2022: The date of announcing the final offering price.
June 29, 2022: the final allocation of shares to subscribers of the first and third tranches.
June 29, 2022: Notifying the subscribers of the first and third tranches of the final allotment of shares through text messages.
July 1, 2022: The process of returning the excess subscription amounts to subscribers of the first and third tranches begins.
July 5, 2022: The expected date for the shares to be listed and traded on the Dubai Financial Market.
