Tecom IPO: Dubai Royal Backing of Business Park Share Sale Keeps Asset in Family - Bloomberg
The initial public offering of Dubai’s Tecom Group is in some ways a royal family affair.
The owners of the business park operator are looking to raise as much as $454 million from the share sale, which already has demand for all stock on offer. Tecom’s parent firm is Dubai Holding, an investment conglomerate owned by the emirate’s ruler Sheikh Mohammed bin Rashid.
Two cornerstone investors have committed to buy shares worth $77.3 million. One of them is a relatively unknown entity called Shamal Holding LLC -- the personal investment arm of Dubai’s Crown Prince, Sheikh Hamdan bin Mohammed, according to a Tecom spokesperson.
Tecom described Shamal as an “investment firm that manages a diversified portfolio of investments strategically aligned with Dubai’s economic growth ambitions.” The company oversees several well-known assets in the emirate, including a luxury hotel on the Palm Jumeirah, burger chain Five Guys, seafront district Dubai Harbour and Skydive Dubai.
The listing is the second of 10 planned privatizations in Dubai, aimed at deepening the city’s capital markets. Sheikh Maktoum bin Mohammed, one of the ruler’s sons, is the driving force behind that plan. Sheikh Maktoum is also Dubai’s deputy ruler and the finance minister of the United Arab Emirates.
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