#Dubai Holding Ups Reit IPO Size to as Much as $584 Million - Bloomberg

Dubai Holding Ups Reit IPO Size to as Much as $584 Million - Bloomberg

Dubai Holding boosted the size of the initial public offering of its residential real estate investment trust, seeking to raise as much as $584 million amid strong demand from domestic and international investors.

The investment firm owned by Dubai’s ruler had earlier planned to raise as much as $487 million from the IPO of Dubai Residential REIT, in what will be the emirate’s first listing of the year. The deal is expected to price at 1.10 dirhams per unit, the top end of the range, and is significantly oversubscribed on the upsized amount, according to terms of the deal seen by Bloomberg.

The strong investor appetite reflects the continued boom in Dubai’s property market, where prices have risen more than 70% over the last four years.

The revised offering size is expected to be between 2.09 billion dirhams ($568 million) to 2.15 billion dirhams, with an implied market capitalization of as much as $3.9 billion.

The firm will now offer 1.95 billion units compared with the previously planned 1.63 billion. That will result in floating 15% of the REIT’s issued unit capital, instead of the initially expected 12.5%.

Despite global market jitters sparked by US tariffs, a host of Middle Eastern firms — from airlines to healthcare providers and packaging producers — have pushed ahead with listings, underscoring investor interest in the region. Dubai Holding had demand for all units on offer minutes after opening subscriptions earlier this month.

Prime residential values in the emirate jumped 16.4% in the first quarter, making it the world’s second-best performer after Seoul, according to Knight Frank. Prices have soared post-pandemic, fueled by business-friendly visa policies and a low-tax environment. Still, analysts warn that softening oil prices and trade-related uncertainty could temper future gains in the real estate boom.

Dubai Holding’s deal adds momentum to the government’s privatization push. The ruler’s firm is also planning to list a commercial real estate portfolio, and the Investment Corporation of Dubai will seek up to $500 million by floating a stake in construction firm ALEC, Bloomberg News has reported.