Dubai Sweetens First IPO Since War With $592 Million Dividend Laura Gardner Cuesta DIP Holding PLC is trying to rustle up demand for the United Arab Emirates’ first initial public offering since the Iran war began by offering investors dividend payouts worth $592 million over the next three years. The firm’s sole owner, Dubai Investments PJSC, plans to sell 20% of the company’s shares, according to terms of the deal seen by Bloomberg News. DIP Holding owns Dubai Investments Park, one of the UAE’s largest mixed-use developments.
The subscription period will run from Oct. 27 to Nov. 3, with trading expected to start on Nov. 11 on Dubai’s bourse. Bloomberg News reported the firm’s plans to start investor meetings last week. Beyond DIP Holding, Dubai Investments has stakes in about 30 companies spanning manufacturing, real estate and financial services.
Shares in the parent company rose as much as 5.1%, the most since early May. The firm expects to pay annualized dividends of 700 million dirhams ($190.58 million) in 2026, and 725 million dirhams and 750 million dirhams in 2027 and 2028 respectively. The 2,300-hectare (8.9-square miles) DIP was established in 1997 and includes warehouses, hotels, retail outlets, schools and medical centers.
Citigroup Inc., Emirates NBD Capital and HSBC Holdings Plc are the joint global coordinators on the deal, with Abu Dhabi Commercial Bank, Arqaam, Dubai Islamic Bank and EFG Hermes mandated as joint bookrunners. Once a hub for IPOs, Gulf listing volumes have slumped this year as the regional war deepens a broader market slowdown. Equity markets across the region have fallen since the conflict began, with Oman the sole exception, while Dubai’s benchmark index is down about 9%.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing