Al Mal Capital plans to sell shares in its real estate investment trust in January, reviving the IPO market in Dubai.
The company has received regulatory approval to list Al Mal Capital REIT on Dubai Financial Market PJSC, according to a statement on Monday. It is targeting an offer size of 500 million dirhams ($136.1 million) to acquire a diversified portfolio of real estate assets.
The DFM last saw an IPO in 2017, in contrast with Saudi Arabia that has had a raft of offerings this year. The IPO would be the first REIT to list on Dubai’s biggest and most liquid stock exchange, though two REITs already trade on the Nasdaq Dubai bourse.
Chronic oversupply has battered property values and rents in Dubai over the past six years, and measures to curb the spread of the coronavirus have aggravated that decline. Demand is expected to drop further as jobs are lost and expatriates forced to move out.
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