Dubai Holding Plans to Raise Up to $487 Million in Housing REIT IPO
Dubai Holding plans to raise up to $487.3 million (AED 1.8 billion) by selling shares in its residential real estate investment trust (REIT) for the first time, the company said in a statement on Tuesday.
IPO Details
Dubai Holding is planning to sell more than 1.6 billion shares in Dubai Residential REIT. This represents 12.5% of the company. The price per share will be between $0.29 (AED 1.07) and $0.30 (AED 1.10).
Based on this price range, the total value of the REIT could be between $3.8 billion (AED 13.9 billion) and $3.9 billion (AED 14.3 billion).
DHAM Investments, which is part of Dubai Holding and currently owns all the REIT shares, is the one selling them.
People can start buying the shares on Tuesday. The offer ends on May 20, 2025. The final price will be announced on May 21.
Dubai Holding said the REIT plans to pay out at least $299.5 million (AED 1.1 billion) in dividends in 2025. By 2026, it plans to pay 80% of profits (before any property revaluation).
At the current price range, investors could earn a dividend return of 7.9% at the low end and 7.7% at the high end in 2025.
There are two parts to the offering:
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10% (162.5 million shares) for individual (retail) investors
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90% for big (institutional) investors
The banks managing this IPO include Citigroup, Emirates NBD Capital, and Morgan Stanley as lead coordinators and bookrunners. Emirates NBD Bank is the main bank handling applications. Other banks involved are Abu Dhabi Commercial Bank, Arqaam Capital (with Arqaam Securities), and First Abu Dhabi Bank.
What to Watch For
Dubai Residential REIT is expected to start trading on the Dubai Financial Market (DFM) on May 28.
GCC IPOs
In 2024, countries in the Gulf Cooperation Council (GCC) raised $13.2 billion from 53 IPOs—a 23% increase from the previous year, according to Kuwait Financial Centre “Markaz.”
Private companies made up about two-thirds of that, raising $8.9 billion from 48 IPOs. Government-related companies raised the other $4.3 billion from 5 IPOs.
For the third year in a row, the UAE led the region in IPO earnings, raising $6.4 billion from 7 IPOs. Of this, $3.6 billion came from the Abu Dhabi Securities Exchange (ADX) and $2.8 billion from the Dubai Financial Market (DFM).
Published: 14th May 2025
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