Dubai Investments, a Dubai-listed conglomerate, is seeking to raise Dh2 billion ($543 million) from the 20 per cent sale of its subsidiary DIP Holding in the UAE’s first initial public offering this year.
DIP Holding is selling 1.74 billion shares in the Dh1.10 to Dh1.15 per share range, implying a market capitalisation at listing of between Dh9.5 billion and Dh10 billion, the company said in statement on the Dubai Financial Market on Tuesday.
Subscription to offered shares opened on Tuesday and will run until November 3. The company will announce the final pricing for the deal on November 4 through the book building process.
The selling shareholder, Dubai Investments, “reserves the right to amend the offering size prior to the end of the subscription period”, the offer document said.
Shares of DIP Holding, which operates the mixed-used master development Dubai Investments Park, are expected to start trading on the DFM on November 11.
Breaking the lull
The deal breaks the lull in the IPO market in the UAE. The Arab world’s second-largest economy was a hotbed for public floats, with the DFM and the Abu Dhabi Securities Exchange both attracting a steady stream of IPOs over the past few years.
The IPO market in the broader Middle East slowed last year, owing to volatility in oil prices and geopolitical unrest. Companies in the region raised $7.1 billion from 61 listings, down from $13 billion a year earlier. UAE companies raised a total of $1.1 billion through three IPOs in 2025, Dealogic data shows.
The Iran war, which has severely disrupted economic momentum in region, has further dented investor sentiment, forcing companies in the region to hold plans for tapping the equities markets to raise capital.
The DIP Holding offering will be a test for investor appetite for new listings, some of which recorded weaker post-listing performance in the past two years.
Situated near Al Maktoum International Airport and Jebel Ali Port, Dubai Investments Park is home to 1,000 tenants, 5,700 subtenants and more than 150,000 residents. The district was established in 1997 and hosts warehouses, hotels, retail outlets, schools and medical centres, making it one of the largest mixed-use developments in the emirate.
Dividends
DIP Holding intends to adopt a semi-annual cash dividend distribution policy. It expects to pay annualised cash dividends of Dh700 million, Dh725 million and Dh750 million for the financial years ending December 2026, 2027 and 2028, respectively.
The first post-IPO dividend distribution of Dh350 million, for the full second half of 2026, is expected to be paid in April 2027.
“Eligible shareholders will benefit from a dividend relating to the full H2 2026 period, rather than only the period following admission,” the company said.
Based on the expected annual dividend of Dh725 million for 2027, the IPO price range implies a dividend yield of about 7.27 per cent at the high end and 7.60 per cent at the low end of the range, it added.
