Tecom Group begins trading on DFM

Shares of Tecom Group, which raised Dh1.7 billion from its initial public offering last month, closed 8.61 per cent down at Dh2.44 on Tuesday, after rising by 1.12 per cent to Dh2.70 during early trade, compared with the listing price of Dh2.67.

The company, manager and operator of 10 strategic, sector-focused business districts across Dubai, is trading under the symbol “TECOM” within the real estate sector. It has a market capitalisation of Dh12.2 billion.

Tecom Group Global Offering drew substantial demand and was oversubscribed by a little over 21 times in aggregate and the UAE Retail Offer achieved a remarkable oversubscription multiple of almost 40 times in aggregate, surpassing any IPO on the DFM to date. The IPO drew significant interest from international investors; consequently, around 30 per cent of the Qualified Institutional Offer was allotted to them.

Tecom is the second of 10 proposed privatisations in Dubai as part of the city’s plans to bolster its capital markets. Dewa’s $6.1 billion share sale was the first, and Bloomberg News has reported that a float of the city’s road-toll system is set to follow after the summer. Supermarket operator Union Coop is also planning to list shares later this month.

Malek Al Malek, chairman of Tecom Group, rang the market opening bell at today’s official listing ceremony in the presence of Amit Kaushal, Group CEO of Dubai Holding, Abdulla Belhoul, CEO of Tecom Group, and Hamed Ali, CEO of DFM and Nasdaq Dubai as well as several other officials.

“As a publicly-traded company, Tecom Group will offer investors the opportunity to benefit from a central player in Dubai’s business hub proposition and from a company that is well-positioned to take advantage of Dubai’s market opportunities and its attractive underlying macroeconomy. It will also help to further deepen Dubai’s growing capital markets,” said Al Malek.