TECOM Group IPO price range set between AED 2.46 & AED 2.67 per share

TECOM Group IPO price range set between AED 2.46 & AED 2.67 per share

TECOM Group, 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 the offer price range per share and the start of the subscription period for its initial public offering (“IPO or the “Global Offering”) on the Dubai Financial Market (“DFM”).

DETAILS OF THE OFFERING PRICE RANGE

The price range for the Global Offering has been set at between AED 2.46 and AED 2.67 per share.

A total of 625 million (625,000,000) shares, equivalent to 12.5% of TECOM Group’s issued share capital, will be offered, with DHAM LLC (“DHAM” or “Dubai Holding Asset Management” or “Selling Shareholder”), reserving the right to amend the size of the Global Offering at any time prior to the end of the subscription period at its sole discretion, subject to the applicable laws of the UAE and the approval of the SCA.

The total Offering size is expected to be between AED 1.5 billion (US$ 419 million) and AED 1.7 billion (US$ 454 million), implying a market capitalisation at listing of between AED 12.3 billion(US$ 3.4 billion) and AED 13.4 billion (US$ 3.6 billion).

SUBSCRIPTION PROCESS

As previously announced, the Global Offering is available to the following subscribers:

- to individual and other investors and to Dubai Holding Group Eligible Employees (as defined in the prospectus relating to the UAE Retail Offer (the “UAE Prospectus”)) as part of the UAE Retail Offer; and

- to professional investors and other investors in a number of countries, including in the UAE, as part of the Qualified Institutional Offering and the Exempt Offer (the “Qualified Investor Offering”).

The IPO subscription period starts today and runs until 23 June 2022 for the UAE Retail Offering and 24 June 2022 for the Qualified Investor Offering.

The final offer price will be determined through a book building process and is expected to be announced on 27 June 2022.

The completion of the Offering and Admission is currently expected to take place on 5 July 2022, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of Admission to listing and trading on the DFM.

Details of the Offering are available in the UAE Prospectus with respect to the UAE Retail Offering and the English-language International Offering Memorandum with respect to the Qualified Investor Offering. The UAE Prospectus and the International Offering Memorandum are available at ipo.tecomgroup.ae.  There is also a dedicated IPO call centre number: 800-TECOM-IPO.

Emirates NBD Capital PSC, First Abu Dhabi Bank PJSC, Goldman Sachs International, Morgan Stanley & Co. International plc and UBS AG, London Branch have been appointed as Joint Global Coordinators and Joint Bookrunners.

Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Ajman Bank PJSC, Commercial Bank of Dubai PSC, Dubai Islamic Bank PJSC, Emirates Islamic Bank PJSC, First Abu Dhabi Bank PJSC, Mashreq Bank PSC, and Sharjah Islamic Bank PJSC, have also been appointed as Receiving Banks.

CORNERSTONE INVESTORS

On 15 June 2022, the Company entered into cornerstone investment agreements with the UAE Strategic Investment Fund and Shamal Holding LLC (together, the "Cornerstone Investors”), which have committed to purchasing shares in the Qualified Investor Offering at the Offer Price. In aggregate The UAE Strategic Investment Fund and Shamal Holding have committed AED 283.75 million (US$ 77.25 million) to the IPO, subject to the final offer price being determined, with their shares subject to a 180-day lock-up arrangement, following listing.

Subsequent to HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum’s announcement on the planned listing of 10 Government-owned companies on the DFM, the UAE Strategic Investment Fund was established to act as a strategic long-only investor in key Dubai IPOs. The UAE Strategic Investment Fund is a segregated portfolio of Emirates NBD AM SPC managed by Emirates NBD Asset Management, one of the largest and longest established asset managers in the Middle East with a long-standing track record of investing in, amongst other asset classes, listed equities within the MENA region via segregated mandates and mutual funds.

Shamal Holding LLC is a Dubai-based investment firm that manages a diversified portfolio of investments strategically aligned with Dubai’s economic growth ambitions.

SHARIA COMPLIANCE

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 Sharia principles. Investors may not rely on these pronouncements and should undertake their own due diligence to ensure that the Global Offering is Shariah-compliant for their own purposes.

News Source: Dubai Media Office

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