TECOM’s $455m Dubai IPO was heavily oversubscribed – document

DUBAI, June 23 (Reuters) – TECOM Group’s initial public offering (IPO) is heavily oversubscribed at the top of its price range, suggesting the Dubai business park operator could raise 1.67 billion dirhams ($455 million), according to a document seen by Reuters. .

TECOM Group, which is owned by the Dubai ruler’s investment vehicle, is selling 625 million shares, a 12.5% ​​stake, in an IPO at a price of 2.46 to 2, 67 dirhams per share.

The selling shareholder is Dubai Holding Asset Management. Read more

Any order lower than 2.67 dirhams per share risks missing a subscription, indicates the document of one of the bookrunners.

The Dubai government announced an initiative last November to list 10 state-linked companies.

In April, electric utility DEWA was listed in a $6.1 billion deal that was the largest in the region since Saudi Aramco’s record $29.4 billion IPO. of dollars.

In recent years, the Dubai stock market has lagged behind its peers in Abu Dhabi and Saudi Arabia after a series of high-profile state listings on these exchanges.

Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, Morgan Stanley and UBS AG are global co-coordinators and co-bookrunners for TECOM.

($1 = 3.6729 UAE dirham)

Reporting by Lucy Raitano and Saeed Azhar; edited by John Stonestreet

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