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Dubai is planning its next IPO and this time the emirate is selling a 12.5% stake in TECOM Group, a member of Dubai Holding, which has been developing sector focused business districts such as Dubai Internet City, Dubai Outsource City, Dubai Media City etc:-
The government will sell 625 million shares and is aiming to raise at least $500 million from the listing, according to a statement.
The IPO comprises the qualified institutional offering, the exempt offer, and the UAE retail offer.
The qualified institutional offering and the exempt offer subscription expected to run from 16 June 2022 to 24 June 2022.
The TECOM IPO will be the second offering by the Dubai government in 2022 to boost trading volumes and increase liquidity on the exchange.
In April, Dubai's utility giant DEWA raised raised $6.1 billion in the world’s second-biggest IPO this year.
Dividend policy
TECOM Group plans to adopt a semi-annual dividend distribution policy and will pay dividends in cash in October and April of each year, subject to the board of directors and general assembly’s approval.
The Company expects to pay a dividend amount of AED 800 million per annum over the next three years (through to October 2025), the statement said.
(Reporting by Seban Scaria; editing by Daniel Luiz)
