DIP Holding sets IPO price range, seeks to raise up to Dh2 billion

Dubai: DIP Holding set a price range of Dh1.10 to Dh1.15 per share for its initial public offering on Tuesday, valuing the subsidiary of Dubai Investments at between Dh9.5 billion and Dh10 billion.

The offering, which opened for subscription on October 27, comprises about 1.74 billion existing shares, equivalent to a 20% stake. It is expected to raise between Dh1.9 billion and Dh2 billion, with all proceeds going to Dubai Investments, the selling shareholder.

Dubai Investments will retain an 80% stake after the sale, assuming the offering size remains unchanged. It may adjust the size of the offering or individual tranches before subscriptions close, subject to applicable laws and Capital Market Authority approval.

Subscriptions will close on November 3. The final price will be determined through a book-building process that gauges investor demand and is expected to be announced on November 4.

Trading on the Dubai Financial Market is expected to begin around November 11, subject to market conditions and regulatory approvals.

How can a UAE resident apply?

The Dh5,000 minimum applies to the public tranche, which covers individuals and anyone holding a valid Dubai Financial Market (DFM) investor number, known as an NIN. Further investments go up in multiples of Dh1,000. There is no maximum.

At the top of the price range, Dh1.15 per share, Dh5,000 buys about 4,348 shares. Successful subscribers are guaranteed at least 2,000 shares. Other groups of investors face different thresholds.

Eligible Dubai Investments employees can start bidding for the IPO at just Dh1,000, while eligible shareholders need Dh5,000. Professional or institutional investors must commit at least Dh1 million.

Where to apply?

Applicants can use the DFM IPO subscription platform, the DFM mobile app or the DFM iVESTOR application. Individuals need their NIN and a valid passport or Emirates ID. Electronic channels run their own identity checks.

After choosing a platform, investors enter the NIN, select the DIP Holding offering and provide banking details. Some payment methods shut before the November 3 deadline. Also since the public tranche is small and holds only 5 per cent of the offer, or 86,762,165 shares, allocations may fall short of requests, so early applications are safer.

First dividend due April

DIP Holding expects to pay Dh725 million for 2027, implying a yield of 7.27 to 7.60 per cent across the range. The first payout of Dh350 million , due in April 2027, covers the whole of the second half of 2026. Shareholders who join through the IPO therefore collect a full half-year.

The company has not guaranteed these payments, which depend on board recommendation, shareholder approval and distributable reserves.

Dubai Investments PJSC is selling 1,735,243,300 existing shares, equal to 20 per cent of DIP Holding. The offering is worth Dh1.9 billion to Dh2 billion . It is the UAE’s first IPO this year. DIP Holding owns the company that operates Dubai Investments Park, a 23 million square metre estate.