DIP Holding, a subsidiary of Dubai Investments, today (November 4) announced that it has set the final offer price for its initial public offering on the Dubai Financial Market at AED1.12 per share, following the successful completion of the bookbuilding and subscription process.
At the final offer price, the Offering has a total size of approximately AED1.9 billion ($529 million) and implies a market capitalisation of approximately AED9.7 billion ($2.6 billion) upon listing. It attracted strong demand from local, regional and international investors and was significantly oversubscribed.
DIP Holding is a DIFC-incorporated public company and the sole shareholder of Dubai Investments Park Development Company, which operates Dubai Investments Park (DIP), a 23 million sqm infrastructure-like ground rent and services platform providing long-term infrastructure-enabled ground leases across logistics, industrial, residential and commercial uses.
On the IPO, Khalid Jassim Bin Kalban, the Chairman of DIP Holding and Vice Chairman and CEO of Dubai Investments, said: "The strong demand from local, regional and international investors across the entire price range is a powerful endorsement of the business we have built: a mature, infrastructure-like platform underpinned by long-term tenant relationships, stable recurring income and clear opportunities for growth."
"Importantly, the final offer price reflects not only the strength of investor demand, but also Dubai Investments’ commitment to making this a compelling opportunity for new shareholders, with an attractive entry point and dividend yield, while laying the foundations for long-term success and value creation for all shareholders," stated Bin Kalban.
"As the first IPO in the UAE this year, this is also a significant milestone for the Dubai Financial Market and the country’s capital markets. The strong response demonstrates the resilience and depth of Dubai’s capital markets and the confidence investors place in high-quality UAE businesses," he said.
"We are proud to play a part in this important moment and look ahead with excitement and conviction to DIP Holding’s next chapter, supported by the Group's confidence in the long-term strength of Dubai and the wider UAE economy,” he added.
A total of 1,735,243,300 ordinary shares, equivalent to 20% of DIP Holding's issued share capital, were offered by Dubai Investments.
Based on the final offer price of AED1.12 per share, the total Offering size is approximately AED1.9 billion ($529 million), implying a market capitalisation of approximately AED9.7 billion ($2.6 billion) upon listing on the DFM.
All offer shares are existing shares being sold by Dubai Investments, which will receive the net proceeds from the Offering. Following completion of the Offering, the Selling Shareholder will retain an 80% stake in DIP Holding.
Pursuant to the dividend policy set out in the UAE Prospectus, DIP Holding expects to pay annualised cash dividends of AED 700 million, AED 725 million and AED 750 million in respect of the financial years ending 31 December 2026, 2027, and 2028, respectively.
Omar AlMesmar, Chief Executive Officer of DIP Holding, said: "We are pleased with the strong investor response and thank investors for their trust and look forward to welcoming them as shareholders alongside Dubai Investments."
"We enter this next chapter with a clear growth strategy, a strong track record and confidence in our ability to execute. Our priority remains delivering sustainable growth, strong cash generation and long-term returns for all shareholders," he added.