Dubai Investments’ subsidiary DIP Holding PLC is launching the United Arab Emirates’ first initial public offering (IPO) this year, promising $592 million in dividend payouts over the next three years. The IPO subscription period runs from October 27 to November 3, with shares expected to begin trading on Dubai’s stock exchange on November 11, according to livemint.com.
The IPO will involve Dubai Investments selling a 20% stake in DIP Holding, which owns Dubai Investments Park, one of the UAE’s largest mixed-use developments. The offer consists of 1.74 billion shares divided into four tranches. Dubai Investments will sell existing shares, and DIP Holding will not receive proceeds from the sale. Annualized dividends are projected at 700 million dirhams ($190.58 million) in 2026, increasing to 725 million dirhams ($197.41 million) in 2027 and 750 million dirhams ($204.22 million) in 2028, livemint.com reported.
This IPO is notable as the UAE’s first this year amid regional instability following US-Israeli strikes on Iran in February, which heightened uncertainty in the Middle East. The dividend promise aims to attract investors despite geopolitical risks. DIP Holding’s offering follows a trend of large mixed-use development firms seeking capital via public markets. Dubai Investments Park’s scale and the dividend yield position the IPO as a significant event in the UAE’s capital markets.
Investors can subscribe to the IPO starting October 27, with trading expected to commence on November 11, as confirmed by Dubai Investments. The offering is supported by major banks including Citigroup and Emirates NBD, underscoring its prominence in the region’s financial landscape.