TECOM Group PJSC (“TECOM Group” or “Group”) has been developing strategic, sector-focused business districts across the emirate of Dubai since 1999. As part of Dubai Holding, TECOM Group is committed to enabling Dubai’s economic diversification and development, attracting leading corporations, entrepreneurs, and specialised talent.

The TECOM Group portfolio consists of ten business districts strategically located across Dubai catering to six vital knowledge-based economic sectors including technology, media, education, science, design and  , manufacturing. The Group provides a varied and tailor-made portfolio which includes offices, co-working spaces, warehouses, as well as land lease, to over 7,800 customers. It also provides industry specialised facilities including media production facilities, laboratories, higher education campuses. In total TECOM Group’s land properties cover a total of 164.8 million square feet, consisting of 124.4 million square feet of land leases and 40.4 million square feet of land bank.

TECOM Group offers additional value-added services to deliver a competitive and attractive environment for businesses and entrepreneurs to thrive in and to facilitate engagement between the districts’ community members. Government and corporate services are made available through an integrated smart services platform, “axs”, enhancing ease of doing business and providing community members with a seamless experience. in5, its enabling platform for entrepreneurs and start-ups, offers innovation centres supporting tech, media, and design start-ups and SMEs. Its future-focused co-working spaces D/Quarters provide tenants with stimulating work environments and the “GoFreelance” package also serves approximately 2,400 freelance talents.

DHAM LLC (the Selling Shareholder, also referred to as Dubai Holding Asset Management or DHAM) is the majority shareholder of TECOM Group. DHAM is a Dubai Holding company and aims to elevate the city’s position as a global centre for business, tourism, and leisure, and enrich the living experience for residents within a range of prime destinations and communities.

TECOM Group operates ten business districts in strategic locations across Dubai, which have been purposely designed to create industry-specific and vibrant ecosystems for the technology, media, education, science, design, and manufacturing sectors:

• Dubai Internet City, tech sector https://dic.ae/
• Dubai Media City, media sector https://dmc.ae/
• Dubai Knowledge Park, education sector  https://dkp.ae/
• Dubai Outsource City, tech sector  https://dubaioutsourcecity.ae/
• Dubai Production City, media sector  https://dpc.ae/
• Dubai Industrial City, manufacturing sector  https://dubaiindustrialcity.ae/
• Dubai Studio City, media sector  https://dubaistudiocity.ae/
• Dubai Science Park, science sector https://dsp.ae/
• Dubai International Academic City, education sector https://diacedu.ae/
• Dubai Design District, design sector  https://dubaidesigndistrict.com/

We consider our tenants and customers to be our business partners, dedicated to the common aim of realising Dubai's economic aspiration to establish the Dubai Emirate as a global hub for business and commerce. Our business partners include global and regional companies, SMEs, start-ups, entrepreneurs and freelancers. 

For more than two decades, TECOM Group has leveraged distinctive know-how in developing exclusive projects for strategic tenants according to their specifications. Since 2016, we have delivered such projects for SAP, Samsung, Huawei, MasterCard and the University of Wollongong, University of Birmingham, Firmenich and Himalaya, which remain long-term tenants within their communities to this day. These developments are already fully contracted, provide highly visible income streams, and reinforce the Group’s financial profile.

TECOM Group’s Revenue for the year ended 31 December 2021 was approximately AED 1.8 billion, and EBITDA for the same period was approximately AED 1.2 billion with a healthy EBITDA margin of approximately 66%.  

The Group’s Revenue sources are diversified and for the year ended 31 December 2021 Revenue was made up of 51% from commercial leasing, 25% from land leasing, 14% from industrial leasing, and 10% from service and others.

The Group maintains a strong and resilient cash flow generation with Funds from Operations (FFO) for the year ended 31 December 2021 at AED 1.01 billion (representing 86% of EBITDA) and recurring Free Cash Flow (FCF) of AED 798 million (representing 68% of EBITDA).

The Group’s total assets as of 31 December 2021 stood at AED 16.4 billion.

TECOM Group places ESG at the core of its operating model. Our holistic approach to ESG is centred around five pillars: Economy, Community, People, Environment, and Governance & Risk. We have begun to implement Group-wide ESG strategic initiatives that are aligned with the United Nation’s Sustainable Development Goals (SDG’s) and 2030 Dubai Integrated Energy Strategy, National Climate Change Plan of the UAE 2017-2050 and UAE Green Growth Strategy, as well as Dubai’s Clean Energy Strategy and Dubai Net Zero Emissions Strategy 2050 to produce 100% of Dubai’s energy requirements from clean sources by 2050.

As a key player in one of the largest business segments in the UAE, TECOM Group is also committed to supporting several national mandates including:

• UAE Centennial 2071
• Dubai’s Clean Energy Strategy
• 2030 Dubai Integrated Energy Strategy
• UAE Net Zero Emissions 2050
• UAE Green Growth Strategy 2015-2030

For more information around TECOM Group’s ESG commitment and achievements, please visit:https://ipo.tecomgroup.ae/

TECOM Group is a central player in Dubai’s business hub proposition and is well-positioned to benefit from the emirate’s broader commercial real estate market recovery and favourable macroeconomic tailwinds. TECOM Group will continue to support the development of business ecosystems and strategic sectors in Dubai, while maximising synergies across its business district ecosystems and driving new opportunities in the high-growth industry segments Dubai has to offer.

More specifically, TECOM Group’s growth strategy is centred upon four core pillars:

• Capitalising on favourable real estate sector dynamics
• Customer-centric approach to ramping-up occupancy in its existing portfolio
• Leveraging opportunities in built-to-suit (BTS) projects, infrastructure development and acquisitions
• Tapping into the embedded growth potential from TECOM Group’s current available land bank (40.4 million square feet)

For more than two decades, TECOM Group’s strategically located and differentiated portfolio and suite of value-added services have contributed to Dubai’s economic diversification and global competitiveness. Moreover, its sector-focused business districts, supported by long term strategic tenants, have developed and advanced key sectors and provided a robust governance framework and infrastructure which will enable the Group to capitalise on Dubai’s unique positioning, favourable macroeconomic tailwinds and supportive real estate fundamentals.

The selling shareholder, DHAM, believes the time to list some of its shares in TECOM Group is now, because it wants to raise the Group’s profile internationally, share its successes and future growth prospects with a wider circle of shareholders, further enhance the Group’s world-class governance structure and enable TECOM Group to benefit from long-term access to capital markets to support its growth strategy.

• A unique real estate play. TECOM Group presents a unique and compelling real estate investment opportunity in one of the most dynamic business, tourist and residential destinations in the world, Dubai.
• Owner and operator of sector-focused business districts to offer shares to the public. TECOM Group will offer a portion of its shares to the public, providing investors with a unique opportunity to invest in a key enabler of Dubai’s growth and economic vision.
• Leading player in Dubai’s dynamic business hub proposition. We play a vital role in developing Dubai’s business ecosystem by continuously delivering on our role as a strategic enabler for businesses in the Emirate. TECOM Group is ideally positioned to capitalise on the improving commercial real estate market backdrop in Dubai and is well prepared to take advantage on positive emerging trends such as the e-commerce growth and boost in manufacturing.
• Strong track record of resilient growth and customer loyalty. The Group has an excellent track record of continuously growing its asset base over two decades, while delivering resilient operating performance through various market cycles. It has also managed to achieve exceptional customer loyalty (87% of our tenants have chosen to stay with TECOM Group every year on average over the past ten years).
• Diversified and high-quality asset base and business mix complemented by value-added services. Strategically located across Dubai, our asset base and product offering provide us with unique diversification benefits across six sectors and our unique value proposition aims to meet our tenants’ real estate and business service needs.
• Clear roadmap to growth. The Group has a clearly defined growth strategy to leverage our position as a central player in Dubai’s business hub proposition, underpinned by healthy financial position and land bank that is ready for activation.
• Robust and attractive financial profile with intention for dividend distribution. Amidst global and regional economic downturns, geopolitical instability and, most recently, the COVID-19 pandemic, TECOM Group delivered robust financial performance and operational resilience, maintaining stable revenue, and EBITDA margins and occupancy rates. The Group has also consistently generated stable cash flows over the last three years. TECOM Group intends to adopt a semi-annual dividend distribution policy to be paid to all ordinary shareholders with the commitment to pay an annual fixed dividend amount of AED 800 million for the next three years (through to October 2025) (all dividend distribution decisions are subject to Board and General Assembly approval).
• Strong ESG framework in line with international and local standards. TECOM Group is committed to further embedding ESG into the core of its operating model with an approach that is centred around five pillars: Economy, Community, People, Environment, and Governance & Risk. Its ESG strategy is aligned with international and local standards and practices. 
• Dynamic management team and supportive shareholder. TECOM Group is managed by a team of seasoned professionals with unique know how in creating and managing industry and business ecosystems. The Group is owned by one of the Emirate’s largest investment conglomerates that plays a crucial role in diversifying Dubai’s economy, driving innovation and economic development.

TECOM Group will be listed on the Dubai Financial Market (DFM).

It is expected that 90% of the shares in the Offering will be made available to professional investors in a number of countries, including in the UAE, as part of the Qualified Institutional Offering and the Exempt Offer, while the remaining 10% of the shares will be made available to individual and other investors in the UAE, including Dubai Holding Group Eligible Employees.

As the Selling Shareholder, DHAM reserves the right to amend the size of the Offering at any time prior to the end of the subscription period at its sole discretion, subject to the applicable laws of the UAE and the approval of SCA.

The Internal Shari’ah Supervision Committees of Emirates NBD Bank PJSC and First Abu Dhabi Bank PJSC have issued (or are expected to issue) pronouncements confirming that, in their view, the Offering is compliant with Shariah principles. Investors may not rely on these pronouncements and should undertake their own due diligence to ensure that the Offering is Shari’ah compliant for their own purposes.

TECOM Group’s first day of trading is expected to be on or around 5 July 2022

The final offer price and the final offering size will be announced on or around 27 June 2022.

The Global Offering is being conducted, among other reasons, to allow the Selling Shareholder DHAM, to sell part of its shareholding in TECOM Group, while providing increased trading liquidity in the Shares, raising TECOM Group’s profile within the international investment community.

A portion of the existing shares owned by DHAM will be on offer.

TECOM Group intends to adopt a semi-annual dividend distribution policy to pay dividends in cash after the Offering in October and April of each year. This dividend policy is designed to reflect the Group’s expectation of strong cash flow and expected long term earnings potential while allowing the Group to retain sufficient capital to fund ongoing operating requirements and continued investment for long term growth.

The Group expects to pay a dividend amount of AED 800 million per annum over the next 3 years (through to October 2025). It expects to pay the first interim dividend distribution of AED 200 million in October 2022 and expects to pay the second interim dividend distribution of AED 200 million in April 2023, which payments collectively pertain to the performance of the Group in the second half of 2022. All decisions related to distribution of dividend will be subject to General Assembly approval.

The Offering will be made available to the following three tranches:

• First tranche: Individual subscribers and other investors
• Second tranche: Professional investors (as defined in the SCA Board of Directors’ Chairman Decision No.13/R.M of 2021 (as amended from time to time)
• Third tranche: Dubai Holding Group eligible employees
• For eligibility criteria, please refer to the DFM Prospectus

Please note that subscribers must hold a DFM NIN and a UAE bank account number in order to be eligible to subscribe to the Offering, irrespective of the tranche they subscribe through.

For more information on the full criteria details, please refer to the  Prospectus

For more information on the subscription process for TECOM Group’s IPO, please click here

For more information on the subscription process for TECOM Group’s IPO, please click here

Subscriptions open on 16 June 2022 and will close on 23 June 2022 for UAE retail investors of the First and Third Tranche. The subscription period for professional investors in the Second Tranche starts on 16 June 2022 and will close on 24 June 2022.

To apply for a DFM Investor Number (NIN), please use one of the following options:

• DFM App : For Individual investors only (excluding minors below the age of 21)
• eServices at www.dfm.ae: For all types of investors
• Dubai CSD Desk at DFM Trading Floor: For all types of investors. Opening times: Mon-Thu (8:30 am – 3:00 PM) & Fri (8:30am-12:30pm)
• Licensed Brokerage Firms at DFM: For all types of investors

For further information and guidance, please visit the DFM website https://www.dfm.ae/ and read through the DFM FAQs – https://www.dfm.ae/other/faqs

For more information on subscribing to TECOM Group’s IPO through a receiving bank, please contact the desired receiving bank directly. A list of all receiving banks appointed for the TECOM Group IPO can be found on here – ipo.tecomgroup.ae. 

Within five (5) working days of the Closing Date of the Second Tranche, the Offer Shares shall be allocated to Subscribers and, within five (5) working days of such allocation, the surplus subscription amounts and any accrued profit resulting thereon, shall be refunded to Subscribers in the First Tranche in the First Tranche and the Third Tranche who were not allocated Offer Shares, and the subscription amounts and any accrued profit resulting thereon shall be refunded to the Subscribers in the First Tranche and the Third Tranche whose applications have been rejected for any of the above reasons.

The surplus amounts and any accrued profit thereon will be returned to the same Subscriber’s account through which the payment of the original application amount was made. In the case of subscription amounts which have been paid by certified bank cheque, these amounts shall be returned by sending a cheque with the value of such amounts to the Subscriber at the address mentioned in such Subscriber’s subscription application.

The difference between the subscription amount accepted by TECOM Group and the Selling Shareholder for a Subscriber, if any, and the application amount paid by that Subscriber will be refunded to such Subscriber pursuant to the terms of this Prospectus.