Dubai announces plans to sell 12.5% stake in Telecom Group through IPO
Dubai announced plans to list Tecom Group on the Dubai Financial Market (DFM) by July 5 and sell a 12.5% share in the company through an IPO. The Tecom Group intends to offer 625 million ordinary shares on the DFM, with its ten holdings being Dubai Internet City and Dubai Media City. According to persons familiar with the situation cited by Bloomberg, the government hopes to raise at least $500 million from the IPO.
The company which is also a division of Dubai Holding, announced that it would pay $218 million in dividends to investors annually for the following three years. The UAE retail offer will include access to The Tecom Group’s global offering for eligible employees of Dubai Holding Group, individual investors, and other investors. As part of the qualified institutional offering and the exempt offer, it will also be made available to professional investors and other investors in a number of nations outside the US, including the UAE.
The Tecom Group has been instrumental in fostering innovation, corporate growth, and development, as well as in diversifying Dubai’s economy. It goes without saying that the organisation has assisted Dubai’s development into an effective builder of creative business ecosystems and a partner of choice for international corporations as well as local entrepreneurs.
More than 7,500 businesses are housed under the corporation, together with 10 significant commercial complexes, including Dubai Internet City and Dubai Media City. By creating and expanding 10 top-notch, sector-focused business areas and strategically placing them around the Emirate, it has been at the vanguard of Dubai’s economic growth and diversification.
According to Malek Al Malek, chairman of Tecom Group, his business has been successful in creating a dynamic atmosphere that enables current and potential clients to accelerate their growth aspirations while keeping up with changing global markets and workplace trends.
“By intending to list on DFM, we are strengthening our aim to further harness the potential for economic and corporate growth in the Emirate and increasing our contribution to Dubai’s financial market. The IPO presents investors with a rare chance to become stockholders in a corporation that is profiting from Dubai’s alluring macroeconomic, industry, and commercial characteristics,” he said.
The company has continuously fulfilled its responsibility as Dubai’s strategic business enabler by creating 10 first-rate, thriving, specialised business districts. Offering cutting-edge solutions to more than 7,800 customers and more than 100,000 professionals, Tecom stands out for its dedication to digital transformation and guaranteeing a flawless customer journey. From 2021 up until the first quarter of 2022, Tecom Group achieved major milestones including the inauguration of regional headquarters, state-of-the-art higher education campuses, and research and development centres.
