Dubai will list 12.5 per cent of Tecom, the operator of business free zones home to more than 7,800 companies, on the Dubai Financial Market (DFM) as part of a slew of initial public offerings of state enterprises that aim to boost the size of the emirate’s capital market.

Dubai Holding will sell 625 million shares in Tecom, which comprises 10 business districts that include Dubai Internet City, Dubai Media City, Dubai Design District among others, according to an advertisement in Gulf News on Thursday.

The price range for the listing will be announced on June 16, the same day when the IPO starts. The subscription period for the first tranche and third tranche will run from June 16 to June 23. The subscription period for the second tranche will run from June 16 to June 24.

The selling shareholder reserves the right to amend the offering and size and the expected date of listing on the Dubai stock exchange is July 5.

The lead receiving bank is Emirates NBD. Other receiving banks include First Abu Dhabi Bank, Mashreq Bank, Emirates Islamic Bank, Dubai Islamic Bank, Ajman Bank, Commercial Bank of Dubai and Sharjah Islamic Bank.

Dubai Electricity and Water Authority which operates as a vertically integrated multi-utility, with business activities including electricity generation, transmission and distribution, water desalination and district cooling was the first government entity to list on the DFM.

The utility, which listed shares in April in the largest public float in the Middle East and Europe since Saudi Aramco went public in 2019, raised Dh22.41 billion ($6.1bn) from its IPO.

Dubai announced plans last year to list 10 state-owned companies as part of its strategy to double the size of its capital market to Dh3 trillion and attract foreign investment. The emirate also announced plans to set up a Dh2bn market maker fund to encourage the listing of more private companies from sectors such as energy, logistics and retail.

More to follow

Updated: June 09, 2022, 3:46 AM