Reuters – Dubai Investments plans to float a 20% stake in its subsidiary, DIP Holding—the owner of the real estate operations of Dubai Investments Park—in the UAE's first initial public offering (IPO) this year, and one of a limited number of offerings in the Gulf region amid the war with Iran.
The Offering Comprises 1.74 Billion Shares Distributed Across Four Tranches
DIP Holding stated in a press release today, Monday, that the offering, comprising 1.74 billion shares, will be allocated across four tranches.
The subscription period is expected to run from October 27 to November 3, with trading of the stock scheduled to commence on the Dubai Financial Market on or around November 11.
Dubai Investments Park spans an area of 23 million square meters and encompasses industrial, commercial, and residential spaces, including offices, hotels, and homes accommodating over 150,000 residents and nearly one thousand tenants.
The IPO market in the Gulf has witnessed a significant slowdown this year due to the conflict in the Middle East.
$2.3 Billion Total Equity Issuances in the Middle East and Africa Over 9 Months
According to London Stock Exchange Group data, equity issuances in the Middle East and Africa totaled $2.3 billion in the first nine months of the year, a 79 percent decrease compared to the same period last year, marking the lowest level since 2017.
The company stated that all shares offered are existing shares sold by Dubai Investments, and DIP Holding will not receive any proceeds from the IPO.
DIP Holding expects to distribute annual dividends equivalent to AED 700 million ($190.6 million) in the current financial year, and AED 725 million and AED 750 million in 2027 and 2028, respectively.
Citi, Emirates NBD, and HSBC Act as Joint Global Coordinators for the Offering
Citi, Emirates NBD, and HSBC are acting as Joint Global Coordinators for the offering.
