Dubai Investments has set the offer price range for a 20% stake in DIP Holding at AED 1.10 to AED 1.15 per share, EnterpriseAM reported, citing a price range announcement document. The pricing values the Dubai Investments Park landlord at AED 9.5 billion to AED 10 billion at listing, representing a 7% to 13% discount compared to management's earlier AED 10.8 billion to AED 11 billion valuation and falling below the AED 11 billion to AED 14 billion range pitched by banks.
The valuation discount reduces the targeted capital raise to between AED 1.9 billion and AED 2.0 billion (USD 520 million to USD 543 million), down from approximately AED 2.2 billion under management's previous estimate. The transaction sits just below Dubai Residential REIT's USD 584 million float conducted in May.
Potential investors sought lower valuations to secure higher returns, even after DIP committed to distributing AED 2.2 billion in dividends over three years. While a valuation near AED 14 billion implied a 5% yield, the revised pricing established an implied dividend yield of 7.27% to 7.60%, closer to Emaar's 9% yield level. Bloomberg reported that orders covered the full offering within minutes of books opening.
DIP Holding marks the first initial public offering in the UAE following a pipeline freeze that saw Dubai Holding, Emirates Global Aluminium, and Al Habtoor pause or shelve planned listings. Trading of DIP Holding shares is scheduled to commence around 11 November.
Sources
- EnterpriseAM · 2026-10-28
