Dubai Investments plans to list up to 25 per cent of its unit Dubai Investments Park (DIP) as the initial public offering momentum continues in the UAE.
The company, in which the sovereign wealth fund Investment Corporation of Dubai holds a stake, is currently in discussions with the banks on the IPO, it said in a statement on Wednesday to the Dubai Financial Market, where its shares are traded.
It did not reveal further details about the potential listing of the mixed use development near Al Maktoum International Airport.
Bloomberg reported last week that Dubai Investments’ flagship industrial park would be floated in February next year. The IPO could value DIP at between Dh8 billion and Dh10 billion ($2.17 billion and $2.7 billion), the report added, citing sources.
Dubai Investments, with assets worth about Dh22.7 billion as of the end of June, has business interests in a wide range of sectors including real estate, financial services, building materials and construction, healthcare and education.
In the second quarter, the company’s profit after tax attributable to its owners rose 14.5 per cent to Dh331.3 million as rental income and contract revenue climbed.
Earlier this month, the company also signed an agreement with Angola’s Sovereign Wealth Fund to jointly develop large-scale real estate projects in the African country's Luanda province as part of its global expansion plans.
The latest listing announcement comes as the UAE's capital markets continue to record strong investor demand amid government efforts to boost the equity markets.
This week, Alec Holdings, an engineering and construction group based in Dubai, said it would list 20 per cent of its shares on the DFM. The company expects to start trading from mid-October.
In May, Dubai Holding listed shares of Dubai Residential Reit, a Sharia-compliant, income-generating real estate investment trust on the Dubai bourse after it raised $584 million through the IPO.
Last week, Egypt’s Orascom Construction listed its shares on the Abu Dhabi Securities Exchange, after delisting from Nasdaq Dubai.
The market has also seen secondary sales in recent months, with Mubadala unit Mamoura Diversified Global Holding selling 75 per cent of its stake in Dubai telecom operator du and Adnoc raising $317 million from an institutional share sale of its logistics unit.
