Tecom Group is targeting an annual dividend payout of 800 million dirhams ($218 million) after listing in the first half of the year, people familiar with the matter said.
The firm, which houses more than 7,500 companies and is part of state-owned Dubai Holding, may list as soon as June, the people said, asking not to be identified as the information is private.
The business park operator has held meetings with select investors ahead of the potential offering, and is working with Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC, Goldman Sachs Group Inc., Morgan Stanley and UBS Group AG, Bloomberg reported in March.
Details on the potential size or valuation were not immediately available, and no final decisions on the timeframe have been taken. A representative for Tecom declined to comment.
Tecom’s IPO is part of Dubai’s plans to reinvigorate its capital market by selling stakes in as many as 10 state assets. In April, the city raised $6.1 billion by listing its main utility - the world’s second-biggest IPO this year.
The Middle East has largely sidestepped the volatility that’s hurt capital markets around the world. So far this year, almost $11 billion has been raised through listings in the region, more than double the amount in Europe, according to data compiled by Bloomberg.
In the latest sign of strong demand, Borouge’s $2 billion Abu Dhabi drew orders worth $83 billion IPO from investors including BlackRock Inc. and Fidelity.