A. SREENIVASA REDDY (ABU DHABI)
DIP Holding, which has launched an initial public offering (IPO) of 20% of its shares, offers an indicative dividend yield of between 7.27% and 7.60% based on its offer price range of Dh1.10 to Dh1.15 per share and expected dividends for 2027.
The company expects to distribute Dh725 million for the financial year ending December 31, 2027, implying a yield of approximately 7.60% at the lower offer price of Dh1.10 and 7.27% at the upper price of Dh1.15.
The dividend policy provides for rising annual distributions through 2028, with payments intended twice a year. The first post-IPO dividend, expected in April 2027, will cover the full second half of 2026, rather than only the period following the company’s listing.
DIP Holding is a Dubai International Financial Centre-incorporated public company and a subsidiary of Dubai Investments. It wholly owns Dubai Investments Park Development Company, which operates Dubai Investments Park.
The park spans 23 million square metres and provides long-term ground leases supported by infrastructure across logistics, industrial, residential and commercial uses. Its ground rent and services business gives investors exposure to an established operating platform serving several segments of Dubai’s economy.
The company said its dividend policy reflects its expectations of strong cash flow generation and long-term earnings potential, while retaining sufficient capital to meet operating requirements and support continued investment for growth.
DIP Holding expects annualised cash dividends of Dh700 million for 2026, Dh725 million for 2027 and Dh750 million for 2028. From 2029 onwards, it expects to maintain annualised dividends at or above the 2028 level.
The first post-IPO distribution is expected to total Dh350 million, payable in April 2027 in respect of the second half of 2026. Eligible shareholders will, therefore, receive a distribution relating to the full six-month period, although the listing is expected in November.
For 2027, the company expects to pay Dh362.5 million in October that year for the first half, followed by another Dh362.5 million in April 2028 for the second half.
The planned Dh750 million distribution for 2028 is expected to be paid in two equal instalments of Dh375 million, in October 2028 and April 2029.
The annualised dividend figure for 2026 excludes a Dh100 million pre-IPO dividend paid to Dubai Investments in September.
Dividend payments remain subject to the board’s recommendation, shareholder approval, the availability of distributable reserves and other considerations. The company’s policy also takes account of operating and financing expenses, planned capital expenditure and market conditions.
Dubai Investments is offering approximately 1.74 billion existing shares, representing 20% of DIP Holding’s issued share capital. The price range values the company at between Dh9.5 billion and Dh10 billion and implies an offering size of approximately Dh1.9 billion to Dh2 billion.
All proceeds will go to Dubai Investments as the selling shareholder. It will retain an 80% stake following completion, assuming no change to the offering size.
Dubai Investments is a diversified investment company listed on the Dubai Financial Market, with the Dubai government’s Investment Corporation of Dubai as its largest disclosed shareholder, holding an 11.54% stake.
Subscriptions opened on October 27 and close on November 3 for all four investor tranches. The final offer price will be announced on November 4. Trading on the DFM is anticipated to begin on or around November 11.
Individual subscribers have been allocated 5% of the offer shares, with each successful subscriber guaranteed a minimum allocation of 2,000 shares, subject to the prospectus terms and limits.
Professional investors account for 92% of the offering, while eligible Dubai Investments group employees and eligible Dubai Investments shareholders have been allocated 1% and 2%, respectively.
Final allocations and the commencement of refunds for individual subscribers, eligible employees and eligible shareholders are scheduled for November 10.