Dubai’s operator of business districts TECOM Group raised 1.7 billion dirhams ($463.2 million) from its initial public offering (IPO) on the Dubai Financial Market. (DFM).
The IPO was 21 times oversubscribed, with total gross demand at more than 35 billion dirhams. The company had set its offering price range between 2.46 dirhams and 2.67 dirhams a share, with the final share price set at 2.67 dirhams, giving it a valuation of 13.4 billion dirhams.
Dubai Holding sold 625 million shares, or 12.5 percent in Tecom, as part of a series of IPOs of state enterprises aimed at boosting the size of the emirate’s capital market.
While the offering reflected an average oversubscription of 21 times for both qualified and retail investors, the UAE retail offer was 40 times oversubscribed, making it the highest oversubscription multiple for listings on the DFM.
The company expects to pay an 800 million ($218 million) dividend annually over the next three years through to October 2025, implying a yield of as much as 6.5 percent.
