Dubai business park operator TECOM Group set price guidance on Thursday for its initial public offering that showed it could raise up to 1.67 billion dirhams ($454.7 million) in the listing.
TECOM Group, owned by the investment vehicle of Dubai's ruler, plans to sell 625 million shares, or 12.5% of issued share capital, at a price range of 2.46 dirhams ($0.66) and 2.67 dirhams ($0.72) per share.
That implies a market capitalization of between 12.3 billion dirhams ($3.3 billion) and 13.4 billion dirhams ($32.6 billion), said the group, which operates 10 business parks and districts across the emirate of Dubai.
UAE Strategic Investment Fund and Shamal Holding will be “cornerstone” investors in the listing, with a combined commitment of 283.75 million dirhams ($77.2 million).
The company is also offering an attractive dividend yield of between 6% and 6.5%, based on a dividend payout of 800 million dirhams ($217.7 million), higher than water and electricity utility DEWA.
On July 5, TECOM will be the latest firm to go public on the Dubai stock market, known as the DFM, under a government initiative announced in November to list 10 state-linked companies.
The IPO subscription period started on June 16 and runs until June 23 for the UAE retail offering, while the qualified investor offering begins on June 24.
Subsequent to Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum’s announcement on the planned listing of 10 government-owned companies on the DFM, the UAE Strategic Investment Fund was established to act as a strategic long-only investor in key Dubai IPOs.
The UAE Strategic Investment Fund is a segregated portfolio of Emirates NBD AM SPC managed by Emirates NBD Asset Management, one of the largest and longest established asset managers in the Middle East with a long-standing track record of investing in, amongst other asset classes, listed equities within the MENA region via segregated mandates and mutual funds.
