Tecom Group, a member of the Dubai Holding group and owner, manager and operator of 10 strategic and sectoral business districts across Dubai, today announced the price range of the offer per share and the start of the subscription period. for its initial public offering (IPO) on the Dubai Financial Market (DFM).
The offer price range has been set between AED 2.46 and AED 2.67 per share. The final offer price will be determined through a bookmaking process and is expected to be announced on June 27.
A total of 625 million shares, equivalent to 12.5% of Tecom Group’s issued share capital, will be offered, with DHAM (Dubai Holding Asset Management), the selling shareholder, reserving the right to change the size of the offering. offer at any time prior to the end of the subscription period at its sole discretion, subject to applicable UAE laws and SCA’s approval.
The total offering size is expected to be between AED1.5 billion ($419 million) and AED1.7 billion ($454 million), implying an inclusive market capitalization at listing. between AED12.3 billion ($3.4 billion) and AED13.4 billion ($3.6 billion), the company said.
The initial public offering is accessible to the following subscribers:
• Individual investors and others and eligible employees of Dubai Holding Group (as defined in the UAE Retail Offering Prospectus under the UAE Retail Offering; and
• Professional investors and other investors in a number of countries, including the UAE, under the Institutional Qualified Offering and the Exempt Offering.
The IPO subscription period begins today (June 16) and ends June 23 for the UAE retail offering and June 24 for the accredited investor offering.
Closing of the offering and admission is currently expected to occur on July 5, subject to market conditions and receipt of relevant regulatory approvals in the United Arab Emirates, including approval for listing. and trading on the DFM, he said.
Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, Morgan Stanley & Co. International and UBS AG, London Branch have been appointed as global coordinators and joint bookrunners.
Emirates NBD Bank is the main receiving bank. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank and Sharjah Islamic Bank have also been named as receiving banks.
On June 15, the company entered into fundamental investment agreements with the UAE Strategic Investment Fund and Shamal Holding, which agreed to purchase shares under the offer to qualified investors at the price of the offer. In total, the two entities have committed AED283.75 million ($77.25 million) to the IPO, subject to the determination of the final offering price, with their shares subject to a repurchase agreement. blocking of 180 days after listing.
The internal Shariah oversight committees of Emirates NBD Bank and First Abu Dhabi Bank have issued statements confirming that in their view the offer complies with Shariah principles.
“Investors cannot rely on any such representations and should undertake their own due diligence to ensure that the offering is Shariah-compliant for their own purposes,” the company said. – TradeArabia Press Office