Dubai Holding, an investment conglomerate owned by the emirate's ruler, is seeking to raise up to 1.79 billion dirhams ($487 million) through the initial public offer of its residential real estate investment trust (REIT), launched on Tuesday.
Despite a robust pipeline of possible listings, Dubai Residential REIT will be the emirate's first since Talabat (TALABAT.DU), opens new tab in December, and only the second in the United Arab Emirates this year.
One of the largest landowners and real estate developers in the UAE, the company is offering a stake of 12.5% in Dubai Residential REIT, at a price ranging from 1.07 dirhams to 1.10 dirhams per unit.
That range values the REIT at up to $3.9 billion.
It is expected to distribute at least 1.1 billion dirhams in dividends for 2025.
The Gulf's business and tourism hub, Dubai has experienced a post-pandemic property boom, fuelled by foreign investment and government-led residency reforms.
The government has made significant effort to reduce debt, strengthen property market regulations, and merge major state-owned real estate firms to avoid the pitfalls of previous boom and bust cycles in the sector.
Among Dubai Holding's portfolio is Nakheel, the developer behind the emirate's famed palm-shaped islands.
Among Dubai Holding's portfolio is Nakheel, the developer behind the emirate's famed palm-shaped islands.
The institutional book-building subscription period for the IPO will close on May 20, the company said, with trading set to begin on or around May 28.
Citi, Emirates NBD and Morgan Stanley are joint global coordinators and joint bookrunners for the IPO.
The Gulf region has not been immune from the market volatility and growing geopolitical tensions which have weighed on global IPO activity this year.
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