Massive response to TECOM Group IPO

Dubai's TECOM Group has successfully completed its Initial Public Offering (IPO), raising AED 1.7 billion.

The IPO was 21 times oversubscribed with total gross demand surpassing AED 35.4 billion.

The final offer price was set at AED 2.67 per share, giving it a valuation of AED 13.4 billion.

The Global Offering drew substantial demand from both the Qualified Institutional Offer and UAE Retail Offer, with the UAE Retail Offer achieving an oversubscription level of almost 40 times in aggregate, making it the highest oversubscription multiple ever for IPOs on the Dubai Financial Market (DFM).

Malek Al Malek, Chairman of TECOM Group, 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."

As previously announced, the Global Offering comprised an offering of 625 million (625,000,000) ordinary shares, representing 12.5 per cent of TECOM Group’s issued share capital, all of which is expected to be listed on the DFM on or around July 5.

Upon listing the company will have an implied market capitalisation of AED 13.4 billion and Dubai Holding Asset Management (DHAM) will continue to own a majority 86.5 per cent stake in the company.

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 June 29.

TECOM Group, which is a member of the Dubai Holding group, owns, manages and operates 10 strategic, sector-focused business districts across Dubai.

.@TECOMGroupDubai successfully completes its IPO, raising AED 1.7 billion, with total demand surpassing AED 35.4 billion, implying an oversubscription level of over 21 times in aggregate at the final price. #Dubai https://t.co/RMpHMlgLo4 pic.twitter.com/vJ54lwbj4P

— Dubai Media Office (@DXBMediaOffice) June 27, 2022