Latest news with #DubaiIPO
Zawya
22-05-2025
- Business
- Zawya
Dubai's first IPO of the year attracts US$15.2bn of demand: IFR
Dubai Residential REIT was 26 times covered on its Dh2.15bn (US$584m) IPO in a robust show of sentiment for the first DFM listing of the year. Shares priced at the top of a Dh1.07–Dh1.10 range and the upsized offer of 1.95bn shares attracted Dh56bn of demand, or around US$15.2bn. A book of more than 600 lines included multiple anchor orders. A banker involved said 20%–30% of demand came from outside the UAE, mostly Saudi Arabia, the UK and Europe. A second banker involved said within this category, non-GCC accounts had been scaled back to less than 10% of the deal. The top 10 took 40% and the top 20 took 55%. Pricing values the company at Dh14.3bn and represents a dividend yield of 7.7% for 2025. The offer was upsized to 15% of the company from 12.5%. The listing is the first in the UAE since the break for Eid al-Fitr at the end of March that was followed by wider volatility following US president Donald Trump's tariff announcements on April 2. 'This has opened up a lot of REIT conversations,' said the first banker. 'Given the nature of the UAE and Saudi Arabia, there is a huge real estate market, so we will see more REITs. This year started off muted then on top of that we had the tariff discussions, so this is fantastic. I've had a few calls in the last few days about restarting conversations for situations before Q1 next year.' Shares begin trading on May 28. XCube is stabilisation manager for 243.8m shares in a brownshoe. Citigroup, Emirates NBD and Citigroup were joint global coordinators, and joint bookrunners with Abu Dhabi Bank, Arqaam Capital and First Abu Dhabi Bank.
Reuters
19-05-2025
- Business
- Reuters
Dubai Holding increases Residential REIT IPO to 15% of issued unit capital
May 19 (Reuters) - Dubai Holding, the investment firm owned by the emirate's ruler, said on Monday it will raise the size of residential REIT's initial public offering to 15% of issued unit capital, up from the earlier plan of 12.5%. One of the largest landowners and real estate developers in the UAE, the company is offering a stake in its REIT at a price ranging from 1.07 dirhams to 1.10 dirhams per unit. Based on revised offering size, it is seeking to raise up to 2.15 billion dirham ($585.45 million), the company said. That range values the REIT at up to $3.9 billion. 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. Despite a robust pipeline of possible listings, Dubai Residential REIT will be the emirate's first since Talabat ( opens new tab in December, and only the second in the United Arab Emirates this year. The institutional book-building subscription period for the IPO will close on May 20, according to the company, with trading set to begin on or around May 28. ($1 = 3.6724 UAE dirham)
