TECOM Group Dubai raises AED 1.7 billion through the IPO route
There were reports that Dubai Holding was planning an IPO of the TECOM Group. Dubai’s deputy ruler, Sheikh Maktoum Bin Mohammed, had mentioned plans in November to make a public offer for ten government-linked companies to increase stock market activity. TECOM Group is a business park operator in Dubai and has raised AED 1.7 billion ($463 million) through the IPO route. It is owned by the investment vehicle of Dubai’s ruler. TECOM announced a plan to sell a 12.5% stake and offered 625 million ordinary shares through the IPO.
TECOM had set the final offer price at around 2.67 dirhams per share. It is expected to get enlisted on the stock exchange on July 5. There was high demand for the stock, so the final offer price was set at the top of the price range. Both the retail and Institutional shares were both heavily oversubscribed. The total gross demand exceeded AED 35 billion. According to data from Refinitiv, the Gulf issuers had raised US$11.3 billion from the IPOs this year. It was more than European flotations as global markets continued to be volatile due to the Russia-Ukraine conflict.