Dubai Investments to list DIP Holding shares in first DFM IPO this year

Dubai Investments, a listed conglomerate in Dubai, plans to list a 20% stake in its subsidiary DIP Holding, marking the first Initial Public Offering (IPO) in the UAE this year. The deal involves the sale of 1.74 billion shares by current shareholders of DIP Holding, which owns the mixed-use development Dubai Investments Park. Dubai Investments will retain an 80% stake in DIP Holding, provided the offering size remains unchanged and all shares are allocated to investors.

Subscriptions for the sale will open on October 27 and close on November 3, with final pricing announced on November 4. DIP Holding shares are anticipated to commence trading on the Dubai Financial Market (DFM) on November 11. This IPO breaks the pause in the IPO market in the UAE, which has been relatively quiet in recent years due to various factors such as lower oil prices, geopolitical tensions, and weaker post-listing performances.

The Middle East IPO market saw a decline last year, with companies raising $7.1 billion from 61 listings, compared to $13 billion the previous year. The ongoing US-Iran war has further contributed to the slowdown, as companies have delayed their plans to tap equity markets for capital. Dubai Investments, which includes the sovereign investment fund Investment Corporation of Dubai as a stakeholder, had previously expressed interest in listing shares in its units.

However, the war-related volatility has deterred deal volumes. Dubai Investments Park, the subject of the IPO, is a prominent mixed-use development near Al Maktoum International Airport and Jebel Ali Port, housing 1,000 tenants, 5,700 subtenants, and over 150,000 residents since its establishment in 1997.