Dubai ruler’s investment vehicle weighs IPO of business park operator TECOM -sources


Band Hadeel Al Sayegh

DUBA, November 10 (Reuters)Dubai Holding, the investment vehicle of Dubai leader Sheikh Mohammed bin Rashid al-Maktoum, is considering an initial public offering from business park operator TECOM Group, three sources told Reuters.

Morgan Stanley US Investment Banks MS.N and Goldman Sachs GS.N and the Swiss bank UBS UBSG.S are set to get warrants for roles in the public share sale, 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.

“This will be an important deal,” 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 market, raising questions about the future of one of the main Gulf stock exchanges, which launched two decades ago.

(Reporting by Hadeel Al Sayegh; Additional reporting by Saeed Azhar; Editing by Toby Chopra)

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