Tecom: Offering 625 million shares and distributing 800 million dirhams annually

TECOM Group, a subsidiary of Dubai Holding, today announced its intention to proceed with an initial public offering ("initial public offering" or "global offering") and to list part of its ordinary shares on the Dubai Financial Market. TECOM Group owns and operates 10 specialized business parks focusing on vital sectors. In strategic areas in the Emirate of Dubai, the company is a major contributor to advancing the development of the knowledge-based sectors in the Emirate.

The most prominent features of the global offering of shares are the availability of 625,000,000/ common shares "shares" for public subscription, representing 12.5% ​​of the total issued shares in the capital of TECOM Group.

The global offering includes the subscription of eligible institutional buyers, the exempt offering and the subscription of individuals in the United Arab Emirates.

The subscription period for eligible institutional buyers and the exempt offering is expected to commence on June 16, 2022 and end on June 24, 2022.

The subscription period for individuals in the UAE is expected to start on June 16, 2022 and end on June 23, 2022.

The shares are expected to be listed and begin trading on the Dubai Financial Market on July 5, 2022.

DHIM LLC / the “Selling Shareholder” also referred to as “Dubai Holding Asset Management” or “DHIM” reserves the right to amend the size of the global offering at any time before the end of the subscription period after obtaining The approval of the "Securities and Commodities Authority" in the UAE.

DHL is the majority shareholder in TECOM Group, while Dubai Holding is the parent company.

The internal Sharia supervision committees of Emirates NBD / SAOG/ and First Abu Dhabi Bank / SAOG / issued statements confirming, according to their opinion, the compatibility of the global offering with the provisions of Islamic Sharia.

TECOM Group intends to adopt a policy of distributing semi-annual dividends, as it will pay cash dividends after the global offering, in the months of October and April of each year, after obtaining the approval of the Board of Directors and the General Assembly.

The Group expects to distribute a total cash dividend of 800 million dirhams annually over the next three years (until October 2025).

A company's ability to distribute cash profits depends on a number of factors, including the availability of distributable reserves, capital expenditure plans, and market conditions.

The most important advantages of investing in TECOM Group is that the group has established its leading position in the field of vital business parks in Dubai, and is well positioned to take advantage of the available economic opportunities and positive emerging trends in addition to the recovery of the commercial real estate market in the emirate.

It owns and operates a portfolio of distinguished real estate assets of high quality and flexibility, in important strategic locations in the Emirate of Dubai, and provides competitive work environments that focus on the ease of doing business within attractive regulatory frameworks and supported by value-added services. long term strategy.

It has an attractive financial position and balance sheet backed by a strong portfolio that generates stable and high quality returns and cash flows.

An operating model focused on enhancing governance and sustainability practices.

A management team of professionals and experts, and a major contributor supporting growth.

A clear and specific roadmap to achieve growth goals and maintain strong performance over the medium term.

TECOM Group benefits from its association with Dubai Holding, which enjoys a reputable position in Dubai and is operationally efficient with a focus on achieving the strategic objectives and economic visions of the Dubai Government.

Amit Kaushal, Group CEO of Dubai Holding, said: “TECOM Group, as the main commercial development and leasing arm of Dubai Holding, has enabled us to play a major role in diversifying Dubai’s economy, driving growth and establishing businesses and encouraging innovation. To support TECOM Group to become a successful and leading developer of integrated and innovative business ecosystems, and the partner of choice for both multinational companies and entrepreneurs in the region.”

Kaushal added: “We believe in TECOM Group’s readiness to start a new and promising phase as a publicly listed company. By retaining the majority stake in the company, we will remain fully committed to working with the new shareholders to support the company’s expansion and growth aspirations and to consolidate its pivotal role as a key driver for the growth of the knowledge-based economy. in Dubai and the region in general.

In turn, Malek Al Malek, Chairman of the Board of Directors of TECOM Group, said: “Our wise leadership has been defining new goals and aspirations to advance the march of excellence and innovation in the business sector and consolidate the competitiveness of the economy, which has strengthened Dubai’s position as a global business center and a preferred destination that attracts talents from all over the world. For more than two decades, TECOM Group has contributed significantly to achieving these ambitious aspirations, and has played a prominent role in building the knowledge economy in the country by attracting international companies and the best distinguished talents in six strategic sectors, in addition to enhancing the ease of doing business in the emirate. In providing an integrated and dynamic business environment that enables our current and potential clients to achieve growth, success and achieve their ambitions, while at the same time keeping pace with the developments of global sectors and the most important future trends of workplaces.”

Al Malek added: "By listing TECOM Group on the Dubai Financial Market, we look forward to expanding our contribution to supporting the financial market in the emirate, enhancing our efforts to develop targeted vital sectors and consolidating Dubai's position as a global hub for companies and talent. The IPO represents a unique opportunity for interested investors. By owning shares in a leading company that has all the ingredients and capabilities necessary to continue its path of success and prosperity in vital sectors with promising opportunities.”

For his part, Abdullah Belhoul, CEO of TECOM Group, said: “We at TECOM Group were keen to continue our role as a strategic driver for the business sector in Dubai by developing 10 specialized and dynamic business parks of a world-class level. We were able to reach a leading and distinguished position through our commitment to keep pace with the transformation To ensure an easy and smooth journey for our customers, by providing the latest innovative solutions to more than 7,800 customers and more than 100,000 employees, specialized talents and entrepreneurs.”

Belhoul added: “TECOM Group has maintained its distinguished position at the forefront of the innovation scene, and has succeeded in identifying sectors with the highest potential for growth and adopting future business models, as well as growing its asset base and enhancing the loyalty of its customers. During the period from 2021 to the first quarter of 2022, it achieved The company has made several important achievements, most notably the opening of regional headquarters for major international companies, buildings dedicated to prominent universities and academic institutions, and research and development centers.Our distinguished record is a clear testimony to the high confidence in the company’s capabilities, and also reflects the pioneering role of the Emirate of Dubai as a preferred destination for ambitious companies looking for opportunities New".

He said: "Today's initial public offering represents the beginning of a new chapter in the growth process of TECOM Group, and we are determined to continue our vital role in supporting the development of business systems and strategic sectors in Dubai in parallel with achieving the largest possible gains from integration across these systems, and stimulating new opportunities in sectors categories. high growth in Dubai.

The global offering includes the availability of 625,000,000/ shares for public subscription, representing 12.5% ​​of the total issued shares in the capital of TECOM Group. All these shares are current shares owned by the selling shareholder, and the company will not receive any proceeds from this global offering.

The selling shareholder reserves the right to modify the size of the global offering at any time before the end of the subscription period at its absolute discretion, in accordance with the laws in force in the UAE and after the approval of the UAE Securities and Commodities Authority “the Authority”.

Subscription in the global offering will be available to the subscribers listed below: to individual subscribers, other investors, and qualified Dubai Holding Group employees / as described in the prospectus for the public offering of shares for individuals in the United Arab Emirates “IPO prospectus” /, within Underwriting of individuals in the UAE.

For professional investors, and other investors in a number of countries, including the United Arab Emirates, and excluding the United States of America, as part of the subscription of eligible institutional buyers and the exempt offering.

The Emirates Investment Authority has the right to subscribe for up to 5% of the shares of the global offering, and the percentage of the shares offered for the Emirates Investment Authority must be fully allocated before starting the allocation process to any of the subscriber segments in the global offering.

The subscription period for retail investors in the UAE is expected to start on June 16, 2022 and end on June 23, 2022, while the subscription period for qualified investors is expected to start on June 16, 2022 and end on June 24, 2022.

It is also currently expected to complete the global offering and listing of shares and start trading on the Dubai Financial Market “Listing” in July 2022, based on market conditions and obtaining relevant regulatory approvals in the UAE, including approval of the listing.

The shares owned by the selling shareholder after the end of the global offering will be subject to a ban period that extends from the date of listing the shares and ending with the passage of 180 days since the listing, subject to specific terms and conditions.

Details of the global offering with regard to individual subscribers in the UAE will be published in the prospectus and the announcement of the public offering “public announcement” in the UAE, as for the subscription of buyers from eligible institutions and the exempt offering, the details will be published in an international offering memorandum in English.

The prospectus and the announcement of the IPO will be published in the UAE today, while the international offering memorandum will be published in due course.

The UAE prospectus and the international offering memorandum will be available on the website www.ipo.tecomgroup.ae.

Emirates NBD Capital PJSC, First Abu Dhabi Bank PJSC, Goldman Sachs International, Morgan Stanley & Associates International PLC and UBS AG London Branch have been appointed as joint global coordinators and registry managers. subscribers.

Emirates NBD Bank SAOG was appointed as the main subscription receiving bank, in addition to Abu Dhabi Islamic Bank SAOG, Ajman Bank SAOG and Commercial Bank of Dubai SAOC. .p/, Dubai Islamic Bank / SAOG/, Emirates Islamic Bank / SAOG/, First Abu Dhabi Bank / SAOG/, Mashreq Bank / SAOG/, and Al Sharq Islamic Bank /PJSC/ as banks receiving subscription.

The internal Shariah Supervisory Committees of Emirates NBD / SAOG / and First Abu Dhabi Bank / SAOG issued statements confirming, according to their opinion, the compatibility of the global offering with the provisions of Islamic Sharia.

Investors should not rely on these statements, and they should take due diligence measures on their part to ensure that the offering is in compliance with the principles of Islamic Sharia according to their own reasons and motives for participating in the subscription.

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