Latham Advises on the Initial Public Offering of Tecom Group

Latham & Watkins has advised the underwriters on the initial public offering of TECOM Group PJSC (TECOM Group) and listing of its shares on the Dubai Financial Market. TECOM Group is a manager and operator of 10 strategic, sector-focused business districts across Dubai. The company is a major contributor to the rapid growth of Dubai’s knowledge and innovation-based economy.

The selling shareholder, DHAM LLC, sold 625 million shares of TECOM Group in the offering, representing 12.5% of TECOM Group’s share capital. The final offer price per share was AED 2.67, amounting to total gross proceeds of approximately AED 1.7 billion (US$454 million) and reflecting a market capitalisation for TECOM Group of AED 13.4 billion (US$3.6 billion).

The offering was significantly oversubscribed by local, regional, and international investors. With total gross demand of over AED 35 billion, the transaction is reflective of investors’ strong appetite towards Dubai’s capital markets and overall economy. The offering was conducted in reliance on Rule 144A and Regulation S under the US Securities Act of 1933, as amended.

Latham advised the underwriters (Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, Morgan Stanley, and UBS Investment Bank) on English, UAE, and US law matters with a team led by Dubai partners Nomaan Raja, Christian Adams, and Basil Al-Jafari, with associates Ross Whibley, David Hayward, and Anna Borsuk. Advice was also provided on tax matters by New York partner Bora Bozkurt, with associates Ron Moore and Joshua Guerra.