800 million dirhams annual profits expected to be distributed
TECOM Group announces its intention to list on the Dubai Financial Market
The expected listing of the shares and the start of their trading on the Dubai Financial Market on the fifth of July 2022. Archive
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TECOM Group, a subsidiary of Dubai Holding, announced its intention to proceed with an initial public offering, and to list part of its ordinary shares on the Dubai Financial Market.
A statement stated that the group owns and operates 10 specialized business parks that focus on vital sectors in strategic areas in the Emirate of Dubai, and are a key contributor to advancing the development of knowledge-based sectors in the emirate.
Subtraction Attributes
The most prominent feature of the global offering of shares is the availability of 625 million ordinary shares for public subscription, representing 12.5% of the total issued shares in the capital of "TECOM Group".
The Group expects to distribute an annual cash dividend of 800 million dirhams over the next three years (until October 2025).
According to the statement, the subscription period for eligible institutional buyers and the exempt offering is expected to begin on June 16, 2022, and end on June 24, 2022, and the subscription period for individuals in the UAE will begin on June 16, 2022, and end on June 23, 2022. The shares will be listed and traded on the Dubai Financial Market on July 5, 2022.
Seller Shareholder
The statement clarified that "DHIM" (the selling shareholder), also referred to as "Dubai Holding Asset Management" or "DHAM", reserves the right to amend the size of the global offering at any time before the end of the subscription period, after obtaining approval. The UAE Securities and Commodities Authority, while DHIM is the majority shareholder in TECOM Group, while Dubai Holding is the parent company.
In addition, the internal Shariah Supervisory Committees of Emirates NBD and First Abu Dhabi Bank issued statements confirming, according to their opinion, the compatibility of the global offering with the provisions of Islamic Sharia.
Group role
The Chairman of the Board of Directors of TECOM Group (starting from the day of listing), Malik Al Malik, said: “Our 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 for attracting talent from around the world".
He added: “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.
The company has succeeded in providing an integrated and dynamic business environment that enables current and potential customers 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-Malik continued: "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 initial public offering constitutes a unique opportunity for investors wishing to own 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.”
strategic driver
In the same context, Abdullah Belhoul, CEO of TECOM Group, said: “We have been keen in the group to continue our role as a strategic driver for the business sector in Dubai by developing 10 specialized and vibrant business parks of a world-class.
We were able to reach a leading and distinguished position through our commitment to keeping pace with the digital transformation and ensuring 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 and specialized talents and entrepreneurs.”
Belhoul added: “The group has maintained its distinguished position at the forefront of the innovation scene, and during the period from 2021 to the first quarter of 2022, the company achieved 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 capabilities of the company, and also reflects the pioneering role of the Emirate of Dubai, which is a preferred destination for ambitious companies looking for new opportunities.”
Belhoul concluded: “The 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 opportunities New developments in high-growth sectors in Dubai.
The most important advantages of investing in «TECOM Group»
"TECOM Group" has established its position in the field of vital business parks in Dubai, and is well positioned to take advantage of the available economic opportunities, in addition to the recovery of the commercial real estate market in the emirate.
The group also 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 ease of doing business, within attractive regulatory frameworks supported by value-added services.
The group is characterized by a growing and diversified base of the most important international and regional companies, with which it has long-term strategic relationships, with an attractive financial position, and a balance sheet backed by a strong portfolio that generates revenues and stable and high-quality cash flows.
Registry Administrators and Underwriting Recipients
Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, Morgan Stanley & Co. International PLC and UBS AG London Branch have been appointed as Joint Global Coordinators and Joint Registry Administrators.
Emirates NBD Bank was also appointed as the main subscription receiving bank, in addition to 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, as receiving banks.
Subscribers' slices
Subscription to the global offering will be available 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 UAE), as part of the individual subscription in the UAE.
It will also be available to professional investors and other investors in a number of countries, including the UAE, with the exception of the United States of America, as part of the subscription of buyers from eligible institutions and the exempt offering.
The Emirates Investment Authority has the right to subscribe to 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 for any of the subscriber segments in the global offering.
Subscription period begins
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 currently expected to complete the global offering, listing and trading of shares on the Dubai Financial Market in July 2022, depending 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 process, 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.
Kaushal: The group is ready for a new and promising phase
Amit Kaushal, Group CEO of Dubai Holding, said: “(TECOM Group), as the main arm of commercial development and real estate leasing of (Dubai Holding), has been able to contribute to enabling us to play a major role in diversifying the economy of the Emirate of Dubai and driving the growth wheel of Dubai’s economy.” establishing businesses and encouraging innovation.
He added, "We were keen to support (TECOM Group) to become a successful and leading developer of integrated and innovative business systems, and the preferred partner for both multinational companies and entrepreneurs in the region."
Kaushal continued: “We believe in the readiness of (TECOM Group) to start a new and promising phase as a public company listed on the financial market.
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.”
• "TECOM" is a strategic engine for the business sector in Dubai, through the development of 10 specialized and dynamic business parks of a world-class level.
• The subscription period for individuals in the UAE begins on June 16 and ends on June 23, 2022.
Dividend policy and company outlook
TECOM Group aims to maintain a dividend policy in line with the company's expectations of achieving large cash flows and its expected potential for long-term profitability, while allowing the group to maintain sufficient capital to fund its ongoing operating requirements and continue investing for long-term growth.
The dividend policy is subject, at all times, to the approval of the Board of Directors and the Company's General Assembly.
The Group intends to adopt a policy of semi-annual dividend distribution to distribute cash dividends after the completion of the global offering. These dividends will be disbursed in October and April of each year.
It expects to distribute annual cash dividends of AED 800 million over the next three years (until October 2025).
It also expects to disburse the first batch of interim dividends of 200 million dirhams in October 2022, and the second batch of interim dividends of 200 million dirhams in April 2023, bringing the total value of dividends to 400 million dirhams, which is linked to the company’s performance in the second half of 2022. .
After that, it is expected to distribute the scheduled semi-annual interim dividend of 400 million dirhams for each interim period, in April and October of each year, for the remainder of the dividend policy period.
625 million shares
The global offering includes making 625 million shares available for public subscription, representing 12.5% of the total issued shares in the capital of TECOM Group.
All of these shares are considered 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, and in accordance with the laws in force in the UAE, and after approval by the Securities and Commodities Authority in the UAE.
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