Dubai Investments raises $529m from first IPO in UAE this year

Dubai Investments, a Dubai-listed conglomerate, has raised Dh1.9 billion ($529 million), from the sale of 20 per cent stake in its subsidiary DIP Holding in the UAE’s first initial public offering this year.

The company set the final pricing at Dh1.12 per share, settling in the middle of the announced range of Dh1.10 to Dh1.15 per share, DIP Holding said in a statement on the Dubai Financial Market on Wednesday.

Dubai Investments offered 1.74 billion shares in its unit to investors, which implies a market capitalisation at listing of Dh9.7 billion at listing on the DFM.

“The pricing reflects a conscious decision by Dubai Investments to offer new shareholders of DIP Holding an attractive entry point, with a good dividend yield and to support long-term value creation for all shareholders,” the company said in the bourse filing.

The Dh1.12 a share price also implies a dividend yield of about 7.5 per cent, based on the expected annualised dividend of Dh725 million for 2027 financial year, the company added.

The subscription period for the IPO, which began on October 27, concluded on November 3.

The IPO attracted strong demand from local, regional and international investors, “witnessing multiple times coverage across the previously announced price range”, the company said without giving the total size of the order book.

Final allocation of shares to individual subscribers, eligible Dubai Investments employees, eligible Dubai Investments shareholders is expected on November 10, with refunds due to commence on the same date, the company said.

Shares of DIP Holding are expected to be listed on the DFM on November 11.

Breaking the lull

The successful deal breaks the lull in the UAE IPO market, which has been a hotbed for public floats, with the DFM and the Abu Dhabi Securities Exchange both attracting a steady stream of listings over the past few years.

The IPO market in the broader Middle East slowed last year, amid volatility in oil prices and geopolitical unrest. Companies in the region raised $7.1 billion from 61 listings, down from $13 billion a year earlier. UAE companies raised a total of $1.1 billion through three IPOs in 2025, Dealogic data shows.

The Iran war, which has severely disrupted economic momentum in region, has further dented investor sentiment, forcing companies to hold plans for tapping the equities markets to raise capital.

Dubai Holding, which operates the mixed-used master development Dubai Investments Park, said the success of the public offering signals “confidence in the country’s capital markets”.

Situated near Al Maktoum International Airport and Jebel Ali Port, Dubai Investments Park is home to 1,000 tenants, 5,700 subtenants and more than 150,000 residents. The district was established in 1997 and hosts warehouses, hotels, retail outlets, schools and medical centres, making it one of the largest mixed-use developments in the emirate.