Is Dubai's Binghatti the next property IPO?

Dubai: Dubai developer Binghatti Holding is exploring a potential initial public offering and has begun talks with banks about a possible listing, according to people familiar with the matter, as it looks to capitalise on the emirate’s surging property market.

According to Bloomberg, the company is working with Citigroup Inc., Morgan Stanley, Emirates NBD and EFG Hermes on a potential deal, the people said, asking not to be named as the information is private. The size and timing of the offering have not been decided and plans could still change.

A spokesperson for Binghatti said the developer would not comment when contacted by Gulf News.

Dubai’s property sector has remained resilient despite wider economic and geopolitical uncertainty, drawing investors and fuelling a wave of new listings. According to market data, 59,228 sales transactions worth Dh170.7 billion were recorded in Q3, representing a 17.2% increase in volume and a 19.9% increase in value compared to the same period last year.

Binghatti has been one of the beneficiaries, reporting first half profit of Dh1.82 billion, more than double last year’s figure.

The company has expanded into the luxury segment while maintaining its core focus on mid-market housing. Its pipeline includes a Mercedes-Benz-branded tower and one of the world’s tallest residential buildings, though high-end projects still account for about 37% of its portfolio by value.

Dubai’s real estate rally has already brought several property-linked listings to market. Investment Corp. of Dubai this week raised $381 million from the IPO of contractor Alec Holdings, while Dubai Residential REIT has moved to list malls and commercial assets after collecting $584 million from a residential real estate investment trust in May. Last month, Dubai Investments announced its intention to list 25% of Dubai Investment Park on DFM.

If Binghatti proceeds, it would join a growing group of Dubai developers turning to equity markets to raise capital while demand for homes remains strong and valuations are buoyant.