DUBAI, Nov. 10 (Reuters) – Dubai Holding, the investment vehicle of Dubai leader Sheikh Mohammed bin Rashid al-Maktoum, is considering a first public offering by business park operator TECOM Group, three said. sources at Reuters.
US investment banks Morgan Stanley (MS.N) and Goldman Sachs (GS.N) and Swiss bank UBS (UBSG.S) close to securing tenure for roles in public sale of shares , said the sources, who declined to be named. because the matter is not public.
TECOM Group and Dubai Holding did not immediately respond to a request for comment. Morgan Stanley and Goldman Sachs declined to comment.
One of the sources said the banks are still in the process of launching and may still join the advisers union.
âThis will be an important deal,â said a second source familiar with the transaction, adding that the exact size will be determined after finalizing the assets that will be injected into the listed vehicle.
Formerly known as TECOM Investments, the TECOM group, which is part of Dubai Holding, claims to have a portfolio of 10 business parks where around 6,500 companies employ a total workforce of 95,000.
Dubai’s government last week announced plans to list 10 state-backed companies on its stock market as part of plans to boost activity on the local stock exchange. He also said he plans to create a 2 billion dirhams ($ 545 million) market maker fund to encourage more private companies to register.
A wave of write-offs and an absence of large initial public offerings have put pressure on the Dubai Stock Exchange, raising questions about the future of one of the main Gulf exchanges, which launched two decades ago.
Reporting by Hadeel Al Sayegh; Additional reports by Saeed Azhar; Editing by Toby Chopra
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