TECOM to offer 625 million shares on DFM

TECOM to offer 625 million shares on DFM

TECOM Group (the “Company”), a member of the Dubai Holding group and owner, manager and operator of 10 strategic, sector-focused business districts across Dubai and a major contributor to the rapid growth of Dubai’s knowledge and innovation-based economy, today announces its intention to proceed with an initial public offering (the “IPO” or the “Global Offering”) and to list its ordinary shares for trading on the DFM.

SUMMARY OF THE GLOBAL SHARE OFFERING

-Six hundred and twenty five million (625,000,000) ordinary shares (the “Shares”) will be made available in the Global Offering, representing 12.5% of TECOM Group’s issued share capital. The Global Offering comprises the Qualified Institutional Offering, the Exempt Offer, and the UAE Retail Offer

-The Qualified Institutional Offering and the Exempt Offer subscription period is expected to run from 16 June 2022 to 24 June 2022

-The UAE Retail Offer subscription period is expected to run from 16 June 2022 to 23 June 2022

-Admission of shares to trading on the DFM is anticipated on 5 July 2022

-DHAM LLC (“DHAM” or “Dubai Holding Asset Management” or “Selling Shareholder”), reserves the right to amend the size of the Global Offering at any time prior to the end of the subscription period, subject to the approval of the SCA. DHAM is TECOM Group’s majority shareholder and Dubai Holding is its ultimate holding company

-The Internal Sharia Supervision Committees of Emirates NBD Bank PJSC and First Abu Dhabi Bank PJSC have issued pronouncements confirming that, in their view, the Global Offering is compliant with Shariah principles

SUMMARY OF DIVIDEND POLICY

-TECOM Group intends to adopt a semi-annual dividend distribution policy to pay dividends in cash after the Global Offering in October and April of each year, subject to the Board of Directors and General Assembly’s approval

-The Company expects to pay a dividend amount of AED 800 million per annum over the next three years (through to October 2025)

-The Company’s ability to pay dividends is dependent on a number of factors, among others, the availability of distributable reserves, the Company’s capital expenditure plans, and market conditions

SUMMARY OF TECOM GROUP INVESTMENT PROPOSITION

-Central player in Dubai’s business hub proposition strongly positioned to benefit from Dubai’s broader commercial real estate market recovery and macroeconomic tailwinds

-Owner and operator of an iconic, high-quality, and resilient real estate portfolio strategically located across Dubai that offers a business-friendly regulatory regime, supported by value-added services

-Long-term and diversified international and regional marquee customer base

-Attractive financial profile and balance sheet underpinned by robust income-generating portfolio that has delivered consistent high-quality revenue and cash flow

-Robust governance frameworks and sustainability to be further embedded in the core of the operating model

-Dynamic management team with a proven track record and supportive shareholder

-Clear roadmap for achieving growth objectives and continuing to deliver strong performance over the medium term

-TECOM Group benefits from the support of Dubai Holding as a committed ultimate holding company. Dubai Holding has a reputation for excellence in Dubai as a key driver of economic diversification and enabler of the Dubai government’s vision

SUMMARY OF TECOM GROUP’S FINANCIAL AND OPERATING PERFORMANCE HIGHLIGHTS

Commenting on the launch of the TECOM Group IPO process, Amit Kaushal, Dubai Holding Group Chief Executive Officer, said:

“As Dubai Holding’s primary commercial development and leasing business, TECOM Group has helped execute our key role in diversifying Dubai’s economy and driving innovation and business growth and development. We have supported its growth into a successful creator of innovative business ecosystems and a partner of choice for multinational businesses as well as entrepreneurs in the region.

“We believe TECOM Group is ready to embark on a new chapter as a publicly listed company. By remaining the ultimate holding company of the Company, we will remain fully committed to working alongside TECOM Group’s new shareholders to support its growth ambitions and further bolster its role as a key enabler of Dubai and the region’s knowledge-based economy.”

Malek Al Malek , Chairman of TECOM Group (from Listing), said:

“Our visionary leadership has consistently set new objectives in business excellence and competitiveness consolidating Dubai’s global position as a leading business and talent hub. For more than two decades, TECOM Group has been the cornerstone of these ambitions, contributing to the nation’s knowledge economy by attracting global companies and skilled talent across six key sectors as well as boosting the ease of doing business. Our Company has succeeded in establishing a vibrant environment that enables existing and prospective customers to amplify their growth ambitions while evolving at pace with global industries and the future of the workplace.

“With our intention to list on DFM we are expanding our contribution to Dubai’s financial market and bolstering our vision to further unlock the Emirate’s economic and business growth potential. The IPO offers investors a unique opportunity to be part owners of a company that is benefiting from Dubai’s attractive underlying macroeconomic, industry, and business dynamics.”

Abdulla Belhoul, TECOM Group Chief Executive Officer, said:

“At TECOM Group, we have continuously delivered on our role as a strategic business enabler of Dubai by bringing to life 10 world-class, vibrant, specialised business districts. Our commitment to digital transformation and ensuring a seamless customer journey sets us apart, providing advanced solutions to over 7,800 customers and more than 100,000 professionals.

By being at the forefront of innovation and identifying high-growth industries and working models of the future, we have continuously grown our asset base and established strong customer loyalty. From 2021 up until the first quarter of 2022, TECOM Group achieved major milestones including the inauguration of regional headquarters, state-of-the-art higher education campuses, and research and development centres. Our track record demonstrates confidence in the Company and reaffirms Dubai’s leading role as the go-to destination for businesses looking to tap into new opportunities.

As TECOM Group embarks on its next chapter of growth through the IPO, we intend to continue to support the development of business ecosystems and strategic sectors in Dubai, while maximising synergies across these ecosystems and driving new opportunities in the high-growth industry segments Dubai has to offer.”

News Source: Emirates News Source

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