Latest news with #DubaiResidentialREIT
Al Etihad
10 hours ago
- Business
- Al Etihad
Dubai Residential REIT sustains gains a week after listing
3 June 2025 18:59 A. SREENIVASA REDDY (ABU DHABI)Shares of Dubai Residential REIT held steady at Dh1.24, nearly 13% above the listing price of Dh1.10, a week after the stock debuted on the Dubai Financial Market (DFM) on May Residential REIT is the second IPO in the UAE this year and the first on the DFM in 2025. The share price remained consistently above the offer price throughout the week, underscoring the resilience of both the stock and the broader REIT is the GCC's first listed pure-play residential leasing-focused real estate investment trust, and the largest listed REIT in the region, managing 35,700 residential units. The initial public offering raised Dh2.145 billion and was oversubscribed 26 Residential REIT debuted on the DFM with a market capitalisation of Dh14.3 billion. By the close of trading on Tuesday, its market cap had risen to Dh16.1 billion — a Dh2 billion increase in shareholder value within a the Abu Dhabi Securities Exchange, the benchmark FADGI index rose 0.461%, snapping a two-day losing streak. The financial sector led the gains, with Abu Dhabi Islamic Bank climbing 2.6% and First Abu Dhabi Bank advancing 1.53%. Meanwhile, the DFM General Index (DFMGI) gained 0.677%, marking a second straight session of gains. Market sentiment in Dubai remains upbeat despite ongoing global market volatility.
Arabian Post
2 days ago
- Business
- Arabian Post
Gulf IPOs Signal Investor Confidence Amid Varied Market Responses
Dubai Residential REIT's debut on the Dubai Financial Market marked a significant milestone, closing nearly 14% higher at AED 1.25 per unit from its offer price of AED 1.10. The $584 million offering, backed by Dubai Holding, attracted overwhelming demand, with the IPO oversubscribed 26 times, reflecting strong investor confidence in Dubai's residential real estate sector. The REIT, focusing exclusively on residential leasing, launched with a market capitalisation of AED 14.3 billion and projects a gross dividend yield of 7.7% for 2025. Analysts attribute the robust performance to Dubai's post-pandemic property boom, bolstered by foreign investment and residency reforms. In contrast, Saudi Arabia's United Carton Industries Co. experienced a subdued market entry. The company's shares fell 1.5% on their first trading day, closing at SAR 49.3, below the IPO price of SAR 50. Despite the IPO being 8.9 times oversubscribed, the stock's performance was hindered by profit-taking and concerns over valuation amid tariff uncertainties. UCIC's Q1 2025 profit declined by 46% to SAR 18.7 million, further dampening investor sentiment. ADVERTISEMENT Looking ahead, Saudi Arabia's IPO landscape remains active. Flynas, the low-cost airline backed by Prince Alwaleed Bin Talal, launched its IPO aiming to raise SAR 4.1 billion by offering 51.3 million shares at SAR 80 each. The offering garnered significant interest, with institutional investors oversubscribing 100 times. The IPO, representing 30% of the company's capital, is expected to fund fleet expansion and route diversification, including new services to Damascus.
Zawya
2 days ago
- Business
- Zawya
GCC equity markets ease into Eid break after Dubai Residential REIT, Saudi UCIC IPOs
GCC markets will enter the summer period buoyed by the debut of the Dubai Residential REIT on the Dubai Financial Market (DFM) last week, a $584 million IPO that closed at 14% on its day one trade. Meanwhile, Saudi Arabia's upcoming Flynas and Specialized Medical Company (SMC) IPOs are expected to inject fresh energy into a market weighed down by the listing of United Carton Industries Co. (UCIC), which closed 1.5% lower last week than on its debut trade. While UCIC lost ground due to a mix of profit booking, overstretched valuations and tariff threats, Dubai Residential REIT's strong market debut reflects a positive investors' appetite for the emirate's real estate and the sector's strength, analysts said. The Dubai Residential REIT offering was upsized by the fund manager from 12.5% to 15% after it attracted strong demand across both institutional and UAE retail tranches. 'The offering, which was oversubscribed 26 times with AED 56 billion in gross demand, benefited from Dubai's resurgent real estate market and the REIT's extensive portfolio of 35,700 residential units. A projected 2025 dividend yield of 7.7% further supported the investment case,' said George Pavel, General Manager at Middle East. 'In contrast, UCIC's more subdued reception reflects investor unease around its valuation and the broader Saudi stock market's correction. While the Saudi packaging firm managed to raise SAR 600 million with a nine times oversubscription, it listed at a price-to-earnings ratio well above its regional peers. This, combined with broader market volatility, contributed to a choppy debut.' Pavel said that without a 'compelling growth narrative or sectoral tailwinds comparable to real estate,' UCIC struggled to sustain momentum, 'illustrating the divergent fortunes that can emerge even in an upbeat IPO pipeline.' Investor sentiment 'The forthcoming listings of Flynas and SMC are set to inject fresh momentum into the GCC's IPO pipeline in the coming weeks,' Pavel said. 'Flynas's remarkable oversubscription, reportedly around 100 times, points to a strong appetite among institutional investors and reinforces confidence in the region's equity markets. This enthusiasm is likely to encourage other companies across the GCC to advance their listing plans, particularly in sectors aligned with economic diversification such as healthcare, consumer goods, and aviation.' The Saudi budget airline's retail IPO, which closed on June 1 after its institutional offering drew $109 billion, is being called a value proposition by insiders expecting a robust run for the first Gulf airline listing in nearly two decades, backed by Saudi billionaire Prince Alwaleed bin Talal's Kingdom Holding and the kingdom's National Flight Services Co. SMC, meanwhile, has extended its book-building period to allow qualified investors to review their bids and postponed the retail offering period to June 15. According to Pavel, the success of two high-profile Saudi listings will 'send a clear signal that well-positioned firms with compelling growth narratives can attract capital despite ongoing global market uncertainties.' 'This should help sustain IPO activity across the Gulf, supporting a healthy pipeline through mid-2025 and potentially broadening investor participation beyond traditional domestic markets,' he added. Vijay Valecha, Chief Investment Officer at Century Financial, warned of broader headwinds playing a role in how the months after Eid will play out. 'UCIC's weak debut, the only IPO this year to close lower on day one, reflects broader investor caution driven in large part by renewed global trade tensions. The reintroduction of US tariffs under the Trump campaign narrative has sparked uncertainty across markets, especially in regions heavily linked to global trade flows, like the Gulf,' Valecha said. (Reporting by Bindu Rai, editing by Seban Scaria)
Zawya
6 days ago
- Business
- Zawya
Dubai Residential REIT rises 13.6% on debut: IFR
Dubai Residential REIT provided a positive data point for UAE IPOs with shares closing up 13.6% on debut on Wednesday. The Dh2.15bn (US$584m) deal is the first IPO on the DFM this year and the second in the UAE following the Dh600m ADX listing of Alpha Data. Shares in the REIT opened at Dh1.21 versus IPO pricing of Dh1.10 and rose as much as 19.1% to Dh1.31 before settling back to close at Dh1.25. Around 262.3m shares changed hands, representing 13.5% of the 1.95bn shares in the IPO. XCube is stabilisation manager with a 243.8m share brownshoe. Citigroup, Emirates NBD and Morgan Stanley were joint global coordinators, and joint bookrunners with Abu Dhabi Bank, Arqaam Capital and First Abu Dhabi Bank. Both Dubai Residential REIT and Alpha Data, which closed up 6.7% on debut, follow varied performances for floats in 2024, which saw the majority of listings trade below issue, particularly large private sector deals such as Lulu Group and Talabat. The REIT is a relatively defensive proposition, offering a high dividend yield, government backing and simple valuation. While positive, Dubai Residential REIT's first day performance is behind that of fellow government-backed Parkin, which closed up 35% on debut last year. Parkin was covered a record 165 times compared with 26 times' coverage for Dubai Residential REIT.
Zawya
7 days ago
- Business
- Zawya
Dubai Residential REIT becomes largest listed REIT in GCC via DFM debut
Dubai Residential REIT, a Shariah-compliant income-generating closed-ended real estate investment fund, commenced trading its shares on the Dubai Financial Market (DFM) under the symbol 'DUBAIRESI'. Dubai Residential REIT, one of the largest owners and operators of residential real estate in Dubai, raised AED 2.14 billion ($584 million) from its initial public offering (IPO), according to a press release. This marks a milestone for Dubai's capital markets, introducing the GCC's first listed pure-play residential leasing focused REIT and the region's largest listed REIT with 35,700 residential units under management. The transaction also marks the first REIT to list under the UAE's updated regulatory framework and the first listing on the DFM in 2025. Meanwhile, Dubai Residential REIT offered 1.95 billion units, which were fully subscribed within minutes of the book opening, resulting in a final offer price set at AED 1.10 per offer unit. Dubai Residential REIT made its debut with a market cap of AED 14.30 billion ($3.90 billion) and a projected gross dividend yield of 7.70% for 2025. In response to growing demand across all investor tranches, DHAM REIT Management LLC increased the size of the offering from 12.50% to 15% of Dubai Residential REIT's total issued unit capital. The total gross demand surpassed AED 56 billion ($15 billion), resulting in an overall oversubscription of 26 times at the final offer price. Helal Al Marri, Chairman of DFM, said: 'The successful debut of Dubai Residential REIT on DFM exemplifies our broader efforts to expand access to asset classes that reflect the economic ambitions of Dubai. It speaks to the continued evolution of our capital markets and the strength of investor confidence in our vision.' Citigroup Global Markets Limited, Emirates NBD Capital, and Morgan Stanley & Company. International plc have been appointed as joint global coordinators and joint bookrunners. Emirates NBD has been appointed as the lead receiving bank. Abu Dhabi Commercial Bank (ADCB), Arqaam Capital Limited, and First Abu Dhabi Bank (FAB) served as joint bookrunners for the offering. All Rights Reserved - Mubasher Info © 2005 - 2022 Provided by SyndiGate Media Inc. (
