Dubai’s Tecom Group, a member of the Dubai Holding group, opened on Thursday an initial public offering (IPO) listing part of its ordinary shares for trading on the Dubai Financial Market (DFM).
This aligns with the strategy of the Dubai Securities and Exchange Higher Committee, which seeks to list a group of major successful government and semi-governmental companies in the financial markets to double the value of Dubai’s Financial Markets to reach AED3 trillion during the coming period.
Tecom Group, which own, manage and operate ten business districts across Dubai, will float 625,000,000 ordinary shares, representing 12.5 percent of group’s issued share capital.
The group is known for its leading position in the field of business parks across Dubai. It owns and operates a portfolio of distinguished real estate assets of high quality and flexibility, and provides competitive work environments that focuses on the ease of doing business within attractive regulatory frameworks and supported by value-added services.
The Group benefits from a strong and stable financial position supported by a strong portfolio that generates stable and high-quality returns and cash flows, relying on a management team of specialists and experienced people that adopts highest standards of governance and sustainability.
The group which benefits from its association with Dubai Holding, recorded significant achievements from 2021 to the first quarter of 2022, including the opening of regional headquarters for major international companies, prominent universities and academic institutions, and research and development centres.
Tecom Group represents a top choice for a number of global and regional companies, such as Google, CNN, Unilever, among many others, in addition to a number of small and medium enterprises.
The qualified institutional offering and the exempt offer subscription period started on 16th June 2022, while the retail offer subscription period runs from 16th until 23rd June. Anticipated date for admission of shares on the DFM is 5th July.
Tecom Group intends to adopt a semi-annual dividend distribution policy to pay dividends in cash after the offering in October and April of each year, subject to requisite approvals. The company expects to pay a dividend amount of AED800 million per annum over the next three years (up until October 2025), at an annual rate ranging from 6 to 6.5 percent.
News Source: Emirates News Agency
