A. SREENIVASA REDDY (ABU DHABI)
DIP Holding, a subsidiary of Dubai Investments, has set the final offer price for its initial public offering (IPO) at Dh1.12 per share, valuing the offering at approximately Dh1.9 billion ($529 million).
At the offer price, the company will have an implied market capitalisation of Dh9.7 billion ($2.6 billion) upon listing on the Dubai Financial Market (DFM), according to a statement issued on Wednesday.
DIP Holding opted to price its shares at Dh1.12, slightly below the midpoint of the initially announced range of Dh1.10 to Dh1.15, despite strong investor demand. The company said the final pricing reflected a conscious decision by Dubai Investments to offer new shareholders an attractive entry point and dividend yield while supporting long-term value creation
The offering, the first IPO in the UAE in 2026, comprises 1,735,243,300 existing ordinary shares, representing 20% of DIP Holding's issued share capital.
Dubai Investments, the selling shareholder, will retain an 80% stake in DIP Holding following completion of the offering. The proceeds from the share sale will go to Dubai Investments rather than DIP Holding.
The company said the IPO attracted “strong demand from local, regional and international investors”, with subscriptions covering the shares on offer multiple times across the previously announced price range.
The press release, however, did not specify the number of times the offering was oversubscribed.
Khalid Jassim Bin Kalban, Chairman of DIP Holding and Vice Chairman and Chief Executive Officer of Dubai Investments, said the investor response reflected confidence in the company's business model and growth prospects.
“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,” Bin Kalban said.
DIP Holding is incorporated in the Dubai International Financial Centre (DIFC) and is the sole shareholder of Dubai Investments Park Development Company, which operates Dubai Investments Park.
The 23 million square metre development provides long-term ground leases and infrastructure services for logistics, industrial, residential and commercial activities.
DIP Holding said the final offer price implies an annual dividend yield of approximately 7.5%, based on its expected annualised dividend of Dh725 million for the financial year 2027.
The company expects to distribute annualised cash dividends of Dh700 million for 2026, Dh725 million for 2027 and Dh750 million for 2028, subject to the necessary approvals.
Its first post-IPO dividend payment of Dh350 million, covering the full second half of 2026, is expected in April 2027. The company intends to distribute dividends on a semi-annual basis.
Omar AlMesmar, Chief Executive Officer of DIP Holding, welcomed the investor response and said the company would focus on executing its growth strategy following the listing.
“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,” AlMesmar said.
The final allocation of shares to individual subscribers, eligible Dubai Investments employees and eligible Dubai Investments shareholders is expected on November 10, with refunds of surplus subscription amounts scheduled to commence on the same date.
Trading in DIP Holding shares on the DFM is expected to begin on November 11 under the ticker symbol DIP, subject to regulatory approvals and market conditions.