19-05-2025
Dubai Residential REIT ups IPO size amid strong demand
19 May 2025 08:50
REDDY (ABU DHABI)Dubai Holding has announced a significant increase in the size of the initial public offering (IPO) of Dubai Residential REIT, raising the number of offer units to 1.950 billion from the previously announced 1.625 billion. The upsized offer now represents 15% of the REIT's issued capital, up from the original 12.5%.The IPO, based on the price range of Dh1.07 to Dh1.10 per unit and the revised offer size, is expected to raise between Dh2.087 billion and Dh2.145 billion (approximately $568 million to $584 million). This would imply a market capitalisation at listing of between Dh13.9 billion and Dh14.3 decision to expand the offer follows strong demand and oversubscription across all investor categories. While the UAE retail tranche remains unchanged at 162.5 million units, the institutional tranche has been increased to 1.787 billion units from 1.462 billion subscription period opened on May 13 and will close on May 20. The final offer price is expected to be announced on May 21 following the completion of the book-building process. Admission to trading on the Dubai Financial Market (DFM) is anticipated on or around May 28 under the symbol 'DUBAIRESI.'Dubai Residential REIT is a Shariah-compliant, income-generating closed-ended real estate investment fund managed by DHAM REIT Management, a subsidiary of Dubai Holding. It owns and operates over 35,000 residential units across 21 integrated communities in Dubai.
The REIT plans to adopt a semi-annual dividend policy, with initial distributions beginning in September 2025. The offer price range implies a gross dividend yield of between 7.7% and 7.9% for the current year.
