Tecom Group, a member of the Dubai Holding group and owner, manager and operator of 10 strategic, sector-focused business districts across Dubai, today announced the offer price range per share and the start of the subscription period for its initial public offering (IPO) on the Dubai Financial Market (DFM).
The price range for the offering has been set at between AED2.46 and AED2.67 per share. The final offer price will be determined through a book building 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 amend the size of the 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 AED1.5 billion ($419 million) and AED1.7 billion ($454 million), implying a market capitalisation at listing of between AED12.3 billionī ($3.4 billion) and AED13.4 billion ($3.6 billion), said the company.
SUBSCRIPTION PROCESS
The IPO is available to the following subscribers:
• Individual and other investors and to Dubai Holding Group eligible employees (as defined in the prospectus relating to the UAE Retail Offer as part of the UAE Retail Offer; and
• 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 IPO subscription period starts today (June 16) and runs until June 23 for the UAE Retail Offering and June 24 for the Qualified Investor Offering.
The completion of the offering and admission is currently expected to take place on July 5, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of Admission to listing and trading on the DFM, it said.
Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, Morgan Stanley & Co. International and UBS AG, London Branch have been appointed as Joint Global Coordinators and Joint Bookrunners.
Emirates NBD Bank is the Lead 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 appointed as Receiving Banks.
CORNERSTONE INVESTORS
On June 15, the company entered into cornerstone investment agreements with the UAE Strategic Investment Fund and Shamal Holding, which have committed to purchasing shares in the Qualified Investor Offering at the offer price. In aggregate, the two entities have committed AED283.75 million ($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.
SHARIA COMPLIANCE
The Internal Sharia Supervision Committees of Emirates NBD Bank and First Abu Dhabi Bank have issued pronouncements confirming that, in their view, the offering is compliant with Sharia principles.
“Investors may not rely on these pronouncements and should undertake their own due diligence to ensure that the offering is Shariah-compliant for their own purposes,” the company said. – TradeArabia News Service
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