Tecom Charts IPO to List in Dubai Financial Market – News

The Group has a portfolio of 10 business parks where approximately 6,500 companies employ a total workforce of 95,000



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Published: Tue 7 Dec 2021, 20:07

Last update: Thu 9 Dec 2021, 16:45

Tecom Group will be the latest entrant to list on the local stock market after road toll system Dewa and Salik, according to Dubai Media Office.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Governor of Dubai, Deputy Prime Minister and Minister of Finance, said Tecom Group will be listed on the DFM.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, issued the directive to list Tecom Group on the DFM after the Dewa and Salik Road Toll System.

“Dubai is planning an IPO of business park operator Tecom Group on the Dubai Financial Market (DFM). The listing is part of plans to increase the size of the DFM to MAD 3 trillion, or $816.84 billion,” the emirate’s media office said on Tuesday.

Tecom Group, part of Dubai Holding, has a portfolio of 10 business parks where around 6,500 companies employ a total workforce of 95,000 people. Its business communities include Dubai Internet City, Dubai Media City, Dubai Design District and Dubai Industrial City.

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Wael Makarem, senior market strategist for the Mena region at Exness, said the announcement of Tecom’s listing on the DFM could send the general index near or beyond its recent high as it could attract new investors. new liquidity and encourage investors to take risks.

“The initiative could boost investor confidence in the strength of the market and its ability to thrive,” Makarem told the Khaleej Times on Tuesday.

The listing is part of the Dubai Securities and Exchange Higher Committee’s strategy to increase the size of the emirate’s stock market to 3 trillion dirhams in the coming period.

Earlier, the government announced plans to list 10 state-backed companies on the Dubai Financial Market to increase market liquidity. The government also said it plans to create a 2 dirham market maker fund to encourage more private companies to list on local stock exchanges.

Who comes next

Analysts said the latest announcement is in line with the government’s initiative to make Dubai a more competitive market against larger exchanges in the region which are seeing larger listings and strong liquidity.

Sources inside the market told the Khaleej Times that the Dubai government will also release the names of the other seven state-backed companies in due course. “The government has developed reputable brands over a period of time. Emirates airline, flydubai, dnata, Roads and Transport Authority (RTA), Enoc and Jumeirah are some of the potential candidates for listing on the DFM and may attract investors,” the sources said.

Dubai tops major Gulf stock exchanges

Meanwhile, Dubai led major Gulf exchanges higher on Tuesday as Omicron fears eased following news from top US infectious disease expert Dr Anthony Fauci who said the new variant “doesn’t seem to be very serious” so far.

Dubai’s main stock index rose 0.96%, boosted by a 2.5% rise in blue-chip developer Emaar Properties.

Farah Mourad, senior market analyst at XTB Mena, said the Dubai stock market continued to rise as bullish sentiment took over and omicron fears subsided.

“The market remains supported by favorable expectations among investors as they expect the announced IPOs to increase volumes and liquidity. DFM is also benefiting from positive developments in non-oil sectors,” Mourad said. to the Khaleej Times on Tuesday.

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