Key Takeaways
- Dubai Investments plans to float 20% stake in DIP Holding.
- The IPO is expected to run from October 27 to November 3, with a market debut on November 11.
- This is the first IPO in the UAE this year and one of few in the Gulf amid the Iran conflict.
Dubai Investments has announced plans to float a 20% stake in its subsidiary, DIP Holding, marking the first initial public offering (IPO) in the United Arab Emirates (UAE) for the year. The offering, which consists of 1.74 billion shares, is expected to run from October 27 to November 3, with a market debut on the Dubai Financial Market on or around November 11.
DIP Holding, the owner of the Dubai Investments Park real estate business, is a 23 million square metre development that includes industrial, commercial, and residential spaces. The development hosts over 150,000 residents and around 1,000 tenants.
The IPO market in the Gulf has slowed significantly this year due to the Middle East conflict. According to LSEG data, equity issuance in the Middle East and Africa reached $2.3 billion in the first nine months of the year, down 79% from a year earlier and the lowest since 2017.
All shares on offer are existing shares being sold by investment company Dubai Investments. DIP Holding will not receive any proceeds of the IPO, as stated in the company's announcement.
Citi, Emirates NBD, and HSBC are acting as joint global coordinators for the offering. Reuters reported last year that Dubai Investments was in talks with banks around potential plans to IPO the Dubai Investments Park business.
DIP Holding expects to pay annualised dividends of 700 million dirhams ($190.6 million) this financial year and 725 million dirhams and 750 million dirhams, respectively, in 2027 and 2028.
This move by Dubai Investments is seen as a strategic step to diversify its investment portfolio and potentially increase shareholder value. The company aims to capitalize on the growing demand for real estate in the region, despite the challenges posed by the ongoing conflict.
