Tecom IPO: Dubai Business Park Operator Opens Flat in Sign of Waning Demand - Bloomberg
Tecom Group fell 13% in its Dubai trading debut, the latest sign of waning investor appetite for new share sales in the Middle East.
Shares in the real estate company, whose tenants include Facebook and Google, slumped to 2.32 dirhams by 1:21 p.m. local time, after opening at the 2.67 dirhams offer price. The initial public offering was priced at the top end of the range, raising $454 million.
While the Middle East had so far been a bright spot in an otherwise gloomy market for new share sales, Tecom’s muted open adds to evidence that demand for risky assets has tapered. Saudi Arabia’s Al Othaim family on Sunday scrapped plans to sell shares in its malls business and developer Retal Urban Development Co. delivered a tepid debut last week.
Tecom’s IPO price implied a dividend yield of about 6%. That was lower than expected from a stock that was chiefly viewed as a potential dividend play, said Faisal Hasan, chief investment officer at Al Mal Capital.
No comments:
Post a Comment