DIP Holding, a subsidiary of Dubai Investments, has opened subscriptions for its initial public offering on the Dubai Financial Market , setting the price range at Dh1.10 to Dh1.15 per share and valuing the company at between Dh9.5 billion and Dh10 billion.
The offering will see Dubai Investments sell approximately 1.74 billion existing shares, representing 20 per cent of DIP Holding’s issued share capital. The IPO is expected to raise between Dh1.9 billion and Dh2 billion, depending on the final offer price.
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Subscriptions will remain open until November 3 for individual investors, professional investors, eligible Dubai Investments employees and qualifying shareholders of the parent company.
The final offer price is expected to be announced on November 4, with shares scheduled to begin trading on the DFM on or around November 11, subject to regulatory approvals and market conditions.
Dividend yield of up to 7.6%
DIP Holding is targeting annualised cash dividends of Dh700 million for 2026, Dh725 million for 2027 and Dh750 million for 2028.
Based on the proposed 2027 dividend, the offer price range implies an indicative dividend yield of approximately 7.27 per cent at the upper end and 7.60 per cent at the lower end.
The company plans to distribute dividends twice a year, subject to board recommendations, shareholder approval and other applicable conditions.
Its first post-listing dividend payment of Dh350 million, covering the second half of 2026, is expected in April 2027.
DIP Holding said eligible shareholders would receive the dividend relating to the full second half of 2026, rather than only the period following the listing.
The company expects to pay Dh362.5 million in October 2027 and a further Dh362.5 million in April 2028 for the two halves of the 2027 financial year.
For 2028, it plans two equal dividend payments of Dh375 million in October 2028 and April 2029. From 2029 onwards, the company expects to maintain annualised dividends at or above the 2028 level.
What investors need to know
The offering is divided into four tranches, with 92 per cent of the shares allocated to professional investors and 5 per cent to individual subscribers.
Eligible employees of Dubai Investments and its subsidiaries will receive a 1 per cent allocation, while 2 per cent has been reserved for qualifying Dubai Investments shareholders.
Successful individual subscribers are guaranteed a minimum allocation of 2,000 shares, subject to the prospectus terms. Eligible employees and qualifying shareholders have a minimum allocation of 5,000 shares, provided their subscriptions meet the required conditions.
Investors seeking to participate in the individual tranche must hold a valid National Investor Number with the Dubai Financial Market.
For the shareholder tranche, eligibility is based on ownership of Dubai Investments shares as of October 28, with October 26 being the last trading day to acquire shares to qualify.
The final IPO price will be determined through a book-building process based on demand from professional investors.
Dubai Investments to retain majority stake
All shares being offered are existing shares held by Dubai Investments, meaning the proceeds will go to the selling shareholder rather than DIP Holding.
Following completion of the IPO, Dubai Investments is expected to retain an 80 per cent stake in the company, assuming the offering size remains unchanged.
The selling shareholder may amend the offering size before subscriptions close, subject to regulatory approval.
Business built around Dubai Investments Park
DIP Holding is incorporated in the Dubai International Financial Centre and owns Dubai Investments Park Development Company, which operates Dubai Investments Park.
The 23-million-square-metre development provides long-term ground leases and infrastructure services across industrial, logistics, residential and commercial properties.
The business operates as a ground-rent and services platform, supporting companies and residents across one of Dubai’s established mixed-use developments.
Shariah compliance and listing arrangements
The internal Shariah supervision committees of Emirates NBD and Dubai Islamic Bank have issued opinions confirming that the offering complies with Shariah principles, although investors are advised to conduct their own assessment.
Citigroup, Emirates NBD Capital and HSBC are acting as joint global coordinators for the IPO.
Emirates NBD is the lead receiving bank, with other participating banks including ADCB, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates Islamic, First Abu Dhabi Bank, Al Maryah Community Bank and Wio Bank.
The company expects final allocations and the start of refunds for eligible retail, employee and shareholder tranches on November 10, ahead of the anticipated listing on November 11.
Further details of the offering are available through the official IPO website, ipo.dipark.com.
Source: Khaleej Times