Following the initial public offering (IPO) of Dubai Electricity & Water Authority in April, which raised $6.1 billion in the largest offering in the Gulf since 2019, Dubai plans to sell a 12.5% stake in TECOM Group in an IPO that will list its shares on the emirate’s exchange. 

The business park operator TECOM Group, a member of Dubai Holding, develops sector-focused business districts such as Dubai Internet City, Dubai Outsource City, and Dubai Media City. It operates 10 business districts across Dubai covering six sectors including technology, media and manufacturing.

According to a press statement, the government will sell 625 million shares and aim to raise at least $500 million from the listing.

The IPO comprises the qualified institutional offering, the exempt offer, and the UAE retail offer. The qualified institutional offering and the exempt offer subscription are expected to run from 16 June to 24 June.

The TECOM IPO will be the second offering by the Dubai government in 2022 to boost trading volumes and increase liquidity on the exchange.

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 statement said that the company expects to pay a dividend of over $217 million (AED 800 million) per annum over the next three years.