#Dubai IPO: Tecom Draws $9.6 Billion in Orders for the Share Sales - Bloomberg

Dubai IPO: Tecom Draws $9.6 Billion in Orders for the Share Sales - Bloomberg

Dubai business park operator Tecom Group drew orders worth $9.63 billion for its initial public offering, the latest Middle East listing to attract strong investor demand amid a boom in regional share sales.

Dubai’s government sold 625 million shares at 2.67 dirhams each, raising $454 million, according to a statement on Monday. The price implies a dividend yield of about 6%, following a regional trend of luring investors with juicy returns, and a market capitalization of 13.4 billion dirhams ($3.65 billion).

The price range had been set at 2.46 dirhams to 2.67 dirhams per share and investors put in enough orders to cover the books within hours on the first day. Despite being covered 21 times, Tecom’s IPO proved less popular than some recent Middle Eastern listings.

Dubai’s main utility, Dubai Electricity & Water Authority, was 37 times oversubscribed, excluding cornerstone and strategic investors, while specialty plastics maker Borouge’s IPO was about 42 times oversubscribed.