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Tecom IPO price range announced; subscriptions open

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Tecom Group, a member of the Dubai Holding Group and owner, manager and operator of 10 industry-focused strategic business districts in Dubai, today announced the range of per-share offers and the start of an initial public offering (IPO) subscription period) in Dubai Financial Market (DFM).

The price range for the offering is set at AED 2.46 to AED 2.67 per share. The final offer will be determined through a book-building process and is expected to be announced on June 27.

A total of 625 million shares are issued this time, equivalent to 12.5% ​​of the issued share capital of Tecom Group. The selling shareholder DHAM (Dubai Holding Asset Management Company) reserves the right to modify the issue size at any time. The end of the subscription period is at its sole discretion in accordance with the applicable laws of the UAE and the approval of the SCA.

The total issue size is expected to be between AED1.5 billion ($419 million) and AED1.7 billion ($454 million), implying a market capitalization of AED12.3 billion ($3.4 billion) to AED13.4 billion at the time of listing between dirhams ($3.6 billion), the company said.

Subscription process

The IPO is available to the following subscribers:

• Individuals and other investors and eligible employees of Dubai Holding Group (as defined in the prospectus in relation to the UAE Retail Offer as part of the UAE Retail Offer; and

• Professional and other investors in several countries, including the UAE, as part of Qualified Institutional Offerings and Exempt Offerings.

The subscription period for the IPO begins today (June 16), with a deadline of June 23 for UAE retail offerings and June 24 for accredited investor offerings.

It said it now expects to complete the offering and access on July 5, subject to market conditions and the receipt of relevant regulatory approvals in the UAE, including approval for access to list and trade on the DFM.

Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, Morgan Stanley & Co. International and UBS AG, London Branch have been appointed as joint global coordinators and joint bookrunners.

Emirates NBD Bank is the primary receiving bank. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Ajman Bank, Dubai Commercial Bank, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank and Sharjah Islamic Bank were also designated as recipients payment bank.

cornerstone investor

On June 15, the company signed a cornerstone investment agreement with the UAE Strategic Investment Fund and Shamal Holding, committing to purchase shares issued by qualified investors at the offer price. Overall, the two entities have committed AED 283.75 million ($77.25 million) for the IPO, but the final offer price has yet to be determined, and their shares will be subject to a 180-day lock-up arrangement after listing.

Sharia Compliance

The internal Shariah Oversight Committees of Emirates NBD Bank and First Abu Dhabi Bank have issued statements confirming that they believe the offering is in compliance with Shariah principles.

“Investors should not rely on these statements and should conduct their own due diligence to ensure that the offering serves their own purposes,” the company said. arab trade news agency

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