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Dubai’s TECOM Draws Orders Worth $9.6Bln for IPO

A picture shows a view of the Dubai skyline, including Burj Khalifa the world's tallest building, in the United Arab Emirates, on June 20, 2022. (AFP)
A picture shows a view of the Dubai skyline, including Burj Khalifa the world's tallest building, in the United Arab Emirates, on June 20, 2022. (AFP)
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Dubai’s TECOM Draws Orders Worth $9.6Bln for IPO

A picture shows a view of the Dubai skyline, including Burj Khalifa the world's tallest building, in the United Arab Emirates, on June 20, 2022. (AFP)
A picture shows a view of the Dubai skyline, including Burj Khalifa the world's tallest building, in the United Arab Emirates, on June 20, 2022. (AFP)

Dubai business park operator TECOM Group said on Monday it drew orders worth $9.63 billion for its initial public offering, the latest Middle East listing to attract strong investor demand amid a boom in regional share sales.

It had previously announced setting the final offer price for its IPO at AED2.67 ($0.72) per share.

The Global Offering drew substantial demand from both the Qualified Institutional Offer and UAE Retail with total gross demand reaching AED35.4 billion, implying an oversubscription level of over 21 times in aggregate at the final price.

The UAE Retail Offer achieved an oversubscription level of almost 40 times in aggregate, making it the highest oversubscription multiple ever for IPOs on the Dubai Financial Market (DFM).

As a result of the extremely strong demand, the final offer price was set at the top of the price range and the company has raised AED1.7 billion ($462 million) through the IPO.

Malek al-Malek, Chairman of TECOM Group, said: “The tremendous demand we drew both locally and internationally for the TECOM Group IPO, especially amid challenging market conditions, is testament to the company’s appealing value proposition and growth prospects.”

He stressed that the investors’ high turnout is underpinned by their optimism toward Dubai’s economy and confidence in the Emirate’s capital markets.

As previously announced, the Global Offering comprised an offering of 625 million ordinary shares, representing 12.5% of TECOM Group’s issued share capital, all of which is expected to be listed on the DFM on or around July 5.

Upon listing the company, it will have an implied market capitalization of AED13.4 billion ($3.6 billion), and DHAM LLC will continue to own a majority 86.5% stake in the company (or 87.5% together with DHAM FZ-LLC).

TECOM houses more than 7,500 companies and 10 large business complexes including Dubai Internet City and Dubai Media City.

Dubai's deputy ruler, Sheikh Maktoum bin Mohammed, in November announced plans to take 10 government-linked companies public to boost stock market activity to three trillion dirhams (about $817 million).

Dubai Electricity & Water Authority’s (DEWA) $6.1 billion share sale in April was the first, and a float of the city’s road-toll system, Salik, is set to follow after the summer.

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Business

Riyadh Air Adds Malaga, Kuala Lumpur to International Network

Riyadh Air Adds Malaga, Kuala Lumpur to International Network
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Riyadh Air Adds Malaga, Kuala Lumpur to International Network

Riyadh Air Adds Malaga, Kuala Lumpur to International Network

Riyadh Air, Saudi Arabia's new national carrier and a subsidiary of the Public Investment Fund, announced on Tuesday the addition of two new destinations to its growing network, launching ticket sales for flights linking Riyadh with Malaga and Kuala Lumpur.

With the addition of the two destinations, the new national carrier is preparing to operate flights to eight destinations from Riyadh by August. The network will include London, Cairo, Dubai, Jeddah, Madrid, Manchester, Malaga, and Kuala Lumpur, as the airline prepares to receive its sixth aircraft.

Riyadh Air offers passengers a range of options combining seasonal tourism and year-round services. The airline will launch seasonal nonstop flights to Malaga, Spain, from July 14 through September 8.

Three days later, on July 17, it will inaugurate its nonstop route between Riyadh and Madrid.

The Madrid route holds strategic importance for both business and tourism sectors, in addition to its sporting significance, as it links the two capitals and enhances the partnership with Atletico Madrid and its Riyadh Air Metropolitano Stadium.

Meanwhile, passengers heading to Asia will benefit from year-round scheduled flights to Kuala Lumpur, Malaysia, beginning July 30.

Passengers can book tickets through the Riyadh Air mobile application, the airline's official website, or authorized travel partners.

Business

Cyprus, Energy Giants Declare Gas Fields Commercially Viable

Representatives of ExxonMobil and QatarEnergy sign an agreement with Cyprus declaring gas in two offshore fields marketable, paving the way for further development of offshore gas reserves in the eastern Mediterranean, at the Presidential Palace in Nicosia, Cyprus June 30, 2026. (Reuters)
Representatives of ExxonMobil and QatarEnergy sign an agreement with Cyprus declaring gas in two offshore fields marketable, paving the way for further development of offshore gas reserves in the eastern Mediterranean, at the Presidential Palace in Nicosia, Cyprus June 30, 2026. (Reuters)
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Cyprus, Energy Giants Declare Gas Fields Commercially Viable

Representatives of ExxonMobil and QatarEnergy sign an agreement with Cyprus declaring gas in two offshore fields marketable, paving the way for further development of offshore gas reserves in the eastern Mediterranean, at the Presidential Palace in Nicosia, Cyprus June 30, 2026. (Reuters)
Representatives of ExxonMobil and QatarEnergy sign an agreement with Cyprus declaring gas in two offshore fields marketable, paving the way for further development of offshore gas reserves in the eastern Mediterranean, at the Presidential Palace in Nicosia, Cyprus June 30, 2026. (Reuters)

Cyprus, ExxonMobil and QatarEnergy on Tuesday declared natural gas fields discovered off the Mediterranean island nation to be commercially viable, with a 2033 target for production to commence.

The declaration of commercial discovery, signed in Nicosia, moves the Glaucus and Pegasus gas discoveries from the exploration phase to project development, strengthening Cyprus's ambitions to become an eastern Mediterranean energy hub.

"This has been the culmination of eight years of work since we were awarded the blocks in 2017, discovery in 2019, second discovery last year," John Ardill, ExxonMobil's vice president for exploration and new ventures, said.

"This declaration of commerciality takes us from looking for energy to developing energy," Ardill said. "It is a very historic point."

Cypriot President Nikos Christodoulides described the agreement as "a milestone of strategic importance".

Ardill said the company expected to take a final investment decision in 2029, with production starting in 2033.

He added that ExxonMobil would resume drilling later this year as part of the Pegasus appraisal program, while expanding exploration into Blocks 4 and 10A of the Cypriot exclusive economic zone (EEZ).

"The concept of a European energy hub is realized when the molecules start flowing, and that's what we are here to initiate today," Ardill said.

Ardill said the leading development option is a subsea pipeline linking the Cypriot fields to existing liquefied natural gas infrastructure in Egypt, pointing to established bilateral agreements and infrastructure.

An onshore LNG terminal in Cyprus would require substantially larger gas reserves than those identified so far.

Tuesday's declaration follows years of appraisal drilling and technical studies confirming the fields are commercially exploitable.

Energy Minister Michael Damianos said Cyprus expected to launch a new offshore licensing round within the next two years.

The island nation has sought to position its offshore gas as a strategic source of energy security for Europe following Russia's invasion of Ukraine.

It has been 15 years since Nicosia's first commercial natural gas find, dubbed the Aphrodite field.

Cyprus has delineated its EEZ into 13 offshore exploration blocks licensed to international energy companies, including ExxonMobil, QatarEnergy, Eni, TotalEnergies and Chevron.

Business

Iraq's SOMO Offers Big Discounts for Term Basrah Oil in July

FILE PHOTO: A gas flare burns in the distance at the Rumaila oil field, amid nationwide output cuts following the closure of the Strait of Hormuz, in Basra, Iraq, March 4, 2026. REUTERS/Essam Al-Sudani/File Photo
FILE PHOTO: A gas flare burns in the distance at the Rumaila oil field, amid nationwide output cuts following the closure of the Strait of Hormuz, in Basra, Iraq, March 4, 2026. REUTERS/Essam Al-Sudani/File Photo
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Iraq's SOMO Offers Big Discounts for Term Basrah Oil in July

FILE PHOTO: A gas flare burns in the distance at the Rumaila oil field, amid nationwide output cuts following the closure of the Strait of Hormuz, in Basra, Iraq, March 4, 2026. REUTERS/Essam Al-Sudani/File Photo
FILE PHOTO: A gas flare burns in the distance at the Rumaila oil field, amid nationwide output cuts following the closure of the Strait of Hormuz, in Basra, Iraq, March 4, 2026. REUTERS/Essam Al-Sudani/File Photo

Iraq's SOMO has offered wide discounts to its official selling prices to encourage term buyers to lift Basrah crude from its terminal inside the Middle East Gulf in July, according to trade sources and a document reviewed by Reuters.

The discounts for Basrah Medium crude ranged from $14 to $16 a barrel while those for Basrah Heavy crude were between $16.80 and $18.80 a barrel, depending on the loading period. Discounts are wider for cargoes ⁠loading between July 1 ⁠and 5 and they become narrower for cargoes loading July 6-10 and July 11-31.

Buyers are requested to submit their nominations for quantity within a day from receiving the letter, Reuters quoted SOMO as saying.

The discounts are meant as compensation for buyers who have to pay high chartering ⁠costs for ships to enter the Strait of Hormuz to fetch the oil, a trade source said.

The daily time charter rate for a Very Large Crude Carrier to load 2 million barrels of crude from the Middle East to China has climbed to about $300,000 from about $220,000 on February 27, before the US and Israel launched strikes on Iran, but has dropped from a peak of about $600,000 in March, LSEG data shows.

The wide discounts for ⁠Basrah ⁠crude may entice buyers, but the question remains if the Strait of Hormuz is passable, two other people said.

Last week, SOMO issued a tender to sell July-loading crude but it failed to attract buying interest as traders had difficulties in booking tankers to enter the Gulf, another source said.

Other Middle East producers are pushing ahead with oil loadings, but shipping in the strait has slowed following fresh ship attacks and renewed strikes between the US and Iran in recent days.