Dubai business park operator TECOM Group has raised AED1.7 billion ($463 million) in its initial public offering (IPO).
The company, which is owned by the investment vehicle of Dubai’s ruler, announced its plan on June 8 to sell a 12.5% stake by offering 625 million ordinary shares in its IPO. It set the final price for the shares at AED2.67 apiece.
TECOM said that, as a result of the “extremely strong demand”, it set the final offer price at the top of the price range and the company raised 1.7 billion dirhams through the IPO.
The company said that the gross demand for its shares exceeded AED35 billion as both institutional and retail tranches were heavily oversubscribed.
The UAE Strategic Investment Fund and Shamal Holding are cornerstone investors in the IPO with a total commitment of AED 283.75 million.
TECOM comprises 10 business districts that include Dubai Internet City, Dubai Media City and Dubai Design District.
Dubai Holding will retain a stake of 86.5% in the company.
TECOM is among at least 10 Dubai government-linked companies that the emirate’s rulers want to take public, in a bid to make the Dubai Financial Market more active.
As part of this plan, the Dubai Electricity and Water Authority was listed in April. This was the largest public float in the Middle East and Europe since Saudi Aramco went public in 2019. The utility raised AED22.41 billion ($6.1 billion) from its IPO.
This year has seen a boom of IPOs in the Gulf region, with companies across the GCC raising as much as $11.3 billion.