DIP Holding IPO: Dubai Investments to sell 20% stake, applications start at Dh5,000

Dubai: Dubai Investments plans to sell a 20 per cent stake in DIP Holding through an initial public offering, giving investors the opportunity to buy shares in the company behind Dubai Investments Park’s ground rent and services business.

Subscriptions will open on October 27 and close on November 3, according to the offering documents. The shares are expected to start trading on the Dubai Financial Market on November 11.

The offer comprises about 1.74 billion existing shares held by Dubai Investments. The parent company would retain an 80 per cent stake after the sale, assuming all offer shares are allocated and the offering size remains unchanged.

For individual investors applying through the public subscription tranche, the minimum application is Dh5,000, with further investments in multiples of Dh1,000. The offer price range will be announced on October 27 before subscriptions open, followed by the final price on November 4.

DIP Holding owns Dubai Investments Park Development Company, the operator of Dubai Investments Park. The development combines logistics, industrial, commercial and residential areas, with ground rent and services forming the business described in the documents.

Located on Sheikh Mohammed Bin Zayed Road, near Al Maktoum International Airport and Jebel Ali Port, the park covers 1,270 plots. It houses approximately 1,000 tenants, 5,700 subtenants and more than 150,000 residents, according to the offering documents.

The group provides recurring services to tenants across the development. Average occupancy for ground leases stood at approximately 98 per cent between 2020 and 2025.

The transaction involves Dubai Investments selling existing shares. It therefore represents a sale of part of the parent’s holding rather than the issue of new shares to raise fresh capital for DIP Holding.

The offering has four subscription categories. The first, or public subscription tranche, accounts for 5 per cent of the offer, equivalent to about 86.76 million shares.

Each subscriber in this category is eligible for a minimum allocation of 2,000 shares, subject to the number applied for and the total shares available in the tranche. This allocation provision is separate from the Dh5,000 minimum application amount.

The second tranche accounts for 92 per cent of the offering, or about 1.60 billion shares. Its minimum subscription amount is Dh1 million.

Eligible Dubai Investments group employees have a separate tranche representing 1 per cent of the offer, with a minimum application of Dh1,000. A fourth category, for eligible Dubai Investments shareholders, accounts for 2 per cent and has a Dh5,000 minimum application.

The selling shareholder can change the offer size and the allocation between categories, subject to applicable requirements and regulatory approval. The documents set no maximum subscription amount.

Applicants must hold a Dubai Financial Market investor number, known as a NIN. Subscription channels include the exchange’s IPO platform and participating banks’ electronic services, subject to each channel’s requirements.

Emirates NBD is the lead receiving bank. Other receiving banks include Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates Islamic, First Abu Dhabi Bank and Wio.

Payment deadlines vary by method. Cheque payments must be submitted by 1pm on October 31, while applications through specified bank transfer systems must be made before 1pm on November 2. Applications through ATMs, internet banking, mobile apps and websites must be submitted by 1pm on November 3.

Allocations for the public, employee and eligible shareholder categories are scheduled for November 10. Refunds of surplus subscription money and SMS notifications to successful applicants in those categories are also due to begin that day.

The final offer price will be determined through bookbuilding, a process that uses subscription orders from second-tranche investors to establish the price.

The shares have a nominal value of Dh0.20 each. That is their stated share-capital value, rather than the price investors will pay in the IPO.

The notices do not specify an offer price, fundraising total or dividend yield. Those figures should not be inferred from the company’s share capital.

DIP Holding’s six-member board is chaired by Khalid Jassim Mohd Bin Kalban. All six directors are non-executive, and three are independent, according to the documents.