DIP Holding Plc drew enough demand to cover its up to $543 million initial public offering within minutes of opening its books, signaling strong investor appetite for the United Arab Emirates' first listing since the Iran war began. Dubai Investments PJSC is offering a 20% stake in DIP at 1.10 to 1.15 dirhams ($0.30) per share. At the top of the range, DIP would be valued at 10 billion dirhams. Indicated demand exceeds the number of shares on offer, according to terms seen by Bloomberg News.
The company is also offering investors $592 million in dividend payouts over the next three years. Based on an expected annual payout of 725 million dirhams for 2027, the price range implies a yield of as much as 7.60%. Some investors had urged DIP to temper its valuation and offer higher payouts, closer to the roughly 9% yield from developer Emaar Properties PJSC, given geopolitical concerns, Bloomberg News has reported.
Shares of Dubai Investments, DIP's sole shareholder, closed 1.4% higher. Dubai's benchmark index gained 2%, its biggest single-day advance since June 18, though it has lost about a tenth of its value since the war began in late February. The offering comes amid a slowdown in Gulf IPO markets amplified by the conflict, yet broader Middle East deal activity has continued. Apollo Global Management Inc. bought a stake in Mubadala Capital, the alternative asset management arm of Abu Dhabi's $385 billion sovereign wealth fund.
DIP owns Dubai Investments Park, a 2,300-hectare development near Jebel Ali Port and Al Maktoum International Airport, which is undergoing a $35 billion expansion. The mixed-use project houses warehouses, hotels, retailers, schools and healthcare facilities. The subscription period runs from Oct. 27 to Nov. 3, with shares expected to begin trading on Dubai's bourse on Nov. 11.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing