DIP Holding prices IPO at Dh1.12 a share in UAE's first offering of the year

DIP Holding, the holding company and investment platform that owns Dubai Investments Park, has set its final offer price for its initial public offering at Dh1.12 a share. The offering totals Dh1.9 billion and gives the company a market capitalisation of Dh9.7 billion when it lists on the Dubai Financial Market, according to Token Times.

The final offer price follows the successful completion of the bookbuilding and subscription process on November 3. DIP Holding said the offering attracted strong demand from local, regional and international investors and was significantly oversubscribed. It is the first IPO in the UAE this year.

All offer shares are existing shares being sold by Dubai Investments, which will receive the net proceeds and retain an 80 per cent stake in DIP Holding after listing.

Khalid Jassim Bin Kalban, chairman of DIP Holding and chief executive of Dubai Investments, said the demand across the entire price range was "a powerful endorsement of the business we have built: a mature, infrastructure-like platform underpinned by long-term tenant relationships, stable recurring income and clear opportunities for growth". He added that the final offer price provides an attractive entry point and dividend yield for new investors.

DIP Holding expects to pay annualised cash dividends of Dh700 million, Dh725 million and Dh750 million by year-end of 2026, 2027 and 2028 respectively. The company will also distribute dividends on a semi-annual basis, subject to applicable regulatory considerations.