Exceptional demand driven by investors' optimism about Dubai's economy and its promising growth prospects

"Tecom Group" completes its initial public offering and raises 1.7 billion dirhams

The market value of the company will reach 13.4 billion dirhams upon listing on the Dubai Financial Market.

Photography: Ahmed Ardeti

TECOM Group, a subsidiary of Dubai Holding, announced, after the completion of the book building process and the end of the subscription period for its initial public offering on June 24, 2022, that the final price of the offering shares was set at AED 2.67 per share, i.e. at the upper end of the price range. At a time when "TECOM" succeeded in raising 1.7 billion dirhams.

strong demand

"Tecom Group" confirmed in a statement that the global offering attracted strong demand within the subscription of qualified institutional investors and the underwriting of individuals in the UAE, where the value of the subscription requests received amounted to 35.4 billion dirhams, which resulted in a total coverage of the amount of shares offered by more than 21 times according to the price. Final.

The subscription of individuals in the UAE recorded coverage of nearly 40 times, which is the highest coverage ratio in the history of public offerings on the Dubai Financial Market.

As a result of this strong and exceptional demand, the final offering price was set at the upper end of the price range, and through this offering, TECOM succeeded in raising 1.7 billion dirhams.

The company's capabilitiesThe Chairman of the Board of Directors of TECOM Group (starting from the day of listing), Malik Al Malik, said that the exceptional demand to subscribe to the initial public offering of "TECOM Group" from local and international investors, despite the challenges that the markets are currently witnessing, is evidence of the company's solid foundations. and its potential and ability to continue expansion and growth.

He added: “The strong turnout levels from various segments of investors were driven by their optimism about the Dubai economy and its promising growth prospects, and their firm confidence in the strength of the financial markets in the emirate. Dubai Financial Market, which is a clear reflection of the confidence of this important segment in TECOM Group as an excellent investment option, and also strong evidence of the company’s position as a strategic driver and a prominent contributor to building knowledge sectors in Dubai.”

Market value

As previously announced, the global offering included making 625 million ordinary shares available for subscription, representing 12.5% ​​of the total issued shares in the capital of "TECOM Group".

It is expected that the offering shares will be listed on the Dubai Financial Market on or around July 5, 2022.

Upon completion of the listing, the market capitalization of the company will reach 13.4 billion dirhams, and DHIM will retain a majority stake of 86.5% in the company, or 87.5% combined with DHL Free Zone.

It is expected that TECOM shares will start trading in the market during the mentioned date under the symbol (TECOM) and the international standard security number (ISIN AEE01081T004).

Investors who subscribed to the individual segment in the UAE will be notified of the results of the final allocation of shares via SMS on June 29, 2022.

 Determine the final price of the offering shares at 2.67 dirhams per share.

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