#UAE IPO: #Dubai Ruler’s Firm Gets $15 Billion in Orders for REIT Listing - Bloomberg

UAE IPO: Dubai Ruler’s Firm Gets $15 Billion in Orders for REIT Listing - Bloomberg

Dubai Holding attracted $15 billion in orders for the $584 million initial public offering of its residential real estate investment trust, the latest sign of investor interest in the city’s booming property market.

The investment firm owned by the emirate’s ruler boosted the size of the offer earlier this week and had demand for all shares within minutes of opening books on the deal. Dubai Residential REIT’s listing will be the city’s first IPO of the year.

The final price of the Dubai Residential REIT offering was set at 1.10 dirhams ($0.30) per unit, the top end of the marketed range, implying a market capitalization of $3.9 billion, according to a statement.

The deal comes amid a period of sustained strength in Dubai’s housing market, with prices up as much as 70% over the past four years. The emirate has seen an influx of new residents since the coronavirus pandemic, lured by easy visas and low taxes, which has boosted demand for housing and offices.

But Dubai’s transformation into one of the world’s hottest property markets is also increasingly pricing out many buyers, leading to a revival of interest in real estate investment trusts — a rarity in the region. Some buyers are also turning to fractional ownership apps that require payments as low as $136.

The size of the offering was increased on Monday to 1.95 billion units, up from 1.63 billion, citing strong international and local demand. That brings the free float to 15%, up from the originally planned 12.5%.

Dubai Residential will be the Gulf Cooperation Council’s first listed residential leasing-focused entity of its kind, with a gross asset value of 21.6 billion dirhams — nearly double the combined total of the region’s five largest REITs, the firm said.

Emirates NBD Capital, Morgan Stanley and Citigroup Inc. are joint global coordinators on the deal. Abu Dhabi Commercial Bank, Arqaam Capital and First Abu Dhabi Bank are joint bookrunners.

The listing joins a broader wave of IPO activity across the Middle East, as companies press ahead with public offerings despite global market jitters tied to US trade policy. In Saudi Arabia, an airline, a hospital operator and a cardboard manufacturer have also launched share sales in recent weeks.

#Saudi Airline Flynas Draws $109 Billion In Orders for IPO - Bloomberg

Saudi Airline Flynas Draws $109 Billion In Orders for IPO - Bloomberg

Saudi Arabia’s Flynas Co. attracted about 410 billion riyals ($109 billion) in orders for its $1.1 billion initial public offering, underscoring strong investor appetite for Middle Eastern listings.

The low-cost carrier priced its share sale at 80 riyals apiece, the top of the marketed range, implying a market capitalization of 13.7 billion riyals.

The institutional tranche was nearly 100 times oversubscribed on strong local and international demand, according to a statement on Wednesday. With retail orders still to come, the final book is expected to be even larger.

Flynas’ planned listing on the Riyadh stock exchange will comprise a mix of new shares and stock offered by existing investors including Prince Alwaleed bin Talal’s Kingdom Holding Co. and National Flight Services Co. The proceeds are earmarked for fleet expansion and the launch of additional operational hubs.

A rebound in global stock prices is luring firms looking to go public off the sidelines after the worst of the tariff-induced market volatility appears to be over. In the Middle East, which has been a hub for new share sales over the past few years, a handful of companies have launched IPOs in recent weeks and garnered strong demand.

Saudi hospital operator Specialized Medical Co.’s $500 million IPO sold out in hours, and cardboard manufacturer United Carton Industries Co. drew more than $20 billion in orders.

Over in the United Arab Emirates, Dubai Holding attracted $15 billion in orders for the $584 million IPO of its residential real estate investment trust.

#SaudiArabia's stock index sees worst session in six weeks | Reuters

Saudi Arabia's stock index sees worst session in six weeks | Reuters

Saudi Arabia's benchmark stock index (.TASI), opens new tab logged its worst session in six weeks, ending the day 1.2% lower, while most other major Gulf markets also closed in the red, as investors worried about mounting fiscal pressures in major economies.

Moody's recent downgrade of the U.S. credit rating has shaken investor confidence, especially amid concerns that President Donald Trump's proposed tax cuts could add $3 trillion–$5 trillion to the existing $36 trillion debt. Persistent trade deadlocks and pressure from key partners to ease tariffs have only deepened the unease.

External pressures dampened regional market sentiment, with investors closely monitoring talks surrounding Trump's proposed tax cut bill, Joseph Dahrieh, Managing Principal at Tickmill said in a note.

Meanwhile, official data showed that Saudi Arabia's crude exports in March fell to 5.754 million barrels per day (bpd) from 6.547 million bpd in February. Oil prices rose more than 1% on Wednesday.

Both stock markets in UAE also settled lower, with Dubai's main share index (.DFMGI), opens new tab down 0.53% and Abu Dhabi's benchmark index (.FTFADGI), opens new tab 0.42% lower.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab extended gains to a second session, closing up 0.66%.

Egypt's central bank is expected to lower overnight interest rates by a median of 175 basis points on Thursday, a Reuters poll showed.

Market sentiment is being bolstered by growing optimism that the central bank may cut rates at its upcoming meeting, Dahrieh added.