DIP Holding begins IPO subscription period with offer price range

DIP Holding, owner of Dubai Investments Park, has announced an offer price range between AED 1.10 and AED 1.15 per share, as it begins subscription period for its initial public offering (IPO) on the Dubai Financial Market (DFM) on Tuesday.

It will offer 1.7 billion shares, equivalent to 20 per cent of DIP Holding's issued share capital, for a total offering size of AED 1.9 billion ($520 million) to AED 2.0 billion ($543 million).

The subscription period closes on November 3 for individual subscribers, professional investors, eligible Dubai Investments PJSC Group employees and Eligible Dubai Investments PJSC shareholders.

The final offer price per offer share will be determined through a book-building process and is expected to be announced on November 4. 

Admission of ordinary shares for trading on the Dubai Financial Market (DFM) is anticipated on or around November 11. 

The selling shareholder reserves the right to amend the size of the offering and the size of any tranche at any time prior to the end of the subscription period, at its sole discretion, subject to applicable UAE laws and approval by the Capital Market Authority in the UAE (CMA). 

The first post-IPO dividend distribution of AED 350 million, relating to the full second half of 2026, is expected to be paid in April 2027.

Accordingly, eligible shareholders will benefit from a dividend relating to the full H2 2026 period, rather than only the period following admission.

The company subsequently expects to distribute AED 362.5 million in October 2027, in respect of H1 2027, and AED 362.5 million in April 2028, in respect of H2 2027. Based on the expected annual dividend of AED 725 million for FY2027, the Price Range implies a dividend yield of approximately 7.27 per cent at the high end and 7.60 per cent at the low end of the Price Range.

The company expects to distribute AED 750 million for FY2028, payable in two equal installments of AED 375 million in October 2028 and April 2029. From 2029 onwards, DIP Holding expects to maintain annualised dividends in line with, or above, the FY2028 level.