Dubai Investments plans to float 20% stake in DIP Holding in UAE's first IPO of the year

DUBAI: Dubai Investments plans to float a 20% stake in subsidiary DIP Holding, the owner of the Dubai Investments Park real estate business, in the first initial public offering in the United Arab Emirates this year and one of only a few in the Gulf amid the Iran war.  

The offer, consisting of 1.74 billion shares, will be split across four tranches, DIP Holding said in a statement on Monday.

The offer is expected to run from October 27 to November 3, with a market debut on the Dubai Financial Market on or around November 11.

Dubai Investments Park is a 23 million square metre development consisting of industrial, commercial and residential spaces, including offices, hotels and homes that host more than 150,000 residents and around 1,000 tenants.

The Gulf IPO market has slowed significantly this year due to the Middle East conflict.

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, according to LSEG data.

All shares on offer are existing shares being sold by investment company Dubai Investments.

DIP Holding will not receive any proceeds of the IPO, it said.

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.

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.‑Reuters