TECOM Group has revealed the price range of its initial public offering (IPO), as well as the start dates for the subscription period, as it looks to list 12.5 percent of its share capital – approximately 625 milllion shares – on the Dubai Financial Market (DFM).
The price range for the IPO has been set at between AED 2.46 and AED 2.67 per share.
This implies that the total offering size is expected to be between $419 million (AED 1.5 billion) and $454 million (AED 1.7 billion), raising the firm’s market capitalisation to between $3.4 billion (AED 12.3 billion) and $3.6 billion (AED 13.4 billion).
Based on a dividend payout of $217.8 million (AED 800 million), the company is offering an implied dividend yield of between 6 percent and 6.5 percent, which is higher than the 5 percent dividend yield offered by the DEWA IPO earlier this year.
Dubai Holding Asset Management (DHAM), which is the selling shareholder, will reserve 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.
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Subscription period and process to the TECOM Group IPO
The IPO subscription period starts on Thursday, June 16, 2022 and runs until 23 June, 2022 for the UAE retail offering, while the qualified investor offering begins on 24 June, 2022.
The global offering is available to the following subscribers:
To individual and other investors and to Dubai Holding Group’s eligible employees 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 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.
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 the joint global coordinators and joint bookrunners.