UAE’s DIP Holding Prices Its Oversubscribed IPO at AED 1.12 a Share
DIP Holding, the company behind Dubai Investments Park, has priced its IPO at AED 1.12 a share, with trading on the Dubai Financial Market expected from 11 November.
The sale brings the UAE its first IPO of 2026, by the seller’s account, and turns a fifth of a ground-rent landlord into cash for Dubai Investments PJSC. In The Edge’s reading, the deal is priced for income buyers: the guided payouts return more than 7% a year at the offer price, while first-half revenue grew 1.8%.
Dubai Investments sells a fifth and keeps 80%
DIP Holding Plc set the final price after bookbuilding and subscriptions closed on 3 November. The offering was oversubscribed multiple times, with demand from local, regional and international investors, Dubai Investments said.
As set out earlier, all 1.74 billion shares on offer are existing shares sold by Dubai Investments, equal to 20% of the issued capital. The seller receives the net proceeds and keeps an 80% stake.
WAM put the offer at an estimated AED 1.9 billion ($529 million). It put the market value at listing at an estimated AED 9.7 billion ($2.6 billion).
The 20% stake implies 8.68 billion shares in issue, on The Edge’s calculation. At the final price, that values the offer at AED 1.94 billion and the whole company at AED 9.72 billion. The 80% Dubai Investments keeps is worth AED 7.77 billion at the same price.
Dubai Investments reported total assets of AED 23.9 billion at 30 June. The gross offer value equals 8.1% of that. On 19 October it said the proceeds would largely go to expanding its businesses and to general corporate purposes.
Khalid Jassim bin Kalban, Vice Chairman and Chief Executive Officer of Dubai Investments and Chairman of DIP Holding, said the offering gives the group “greater financial flexibility” to grow its portfolio and pursue new investments. He also called the deal the UAE’s first IPO this year and a milestone for the Dubai Financial Market.
Omar AlMesmar, Chief Executive Officer of DIP Holding, said the company’s priorities remain sustainable growth, strong cash generation and long-term returns for all shareholders.
DIP Holding offer at the final price
| Measure | Value |
|---|---|
| Price, AED | 1.12 |
| Shares sold | 1,735,243,300 |
| Stake sold | 20% |
| Offer value, AED bn | 1.94 |
| Market value, AED bn | 9.72 |
| Stake kept by seller | 80% |
Offer value and market value are calculated on the 8,676,216,500 shares implied by the 20% stake; the companies’ statements give an estimated AED 1.9 billion and AED 9.7 billion.
The dividend plan sets a starting yield above 7%
The dividend guidance for 2026 to 2028, with payments twice a year, was set out earlier and appears in the table below. At the final price, DIP Holding puts its 2027 yield at an estimated 7.5%.
That 2027 payout comes to AED 0.0836 a share. At AED 1.12, it yields 7.46%. From 2029, the company expects dividends in line with or above the 2028 level.
The first payment after listing, set out earlier, is AED 350 million for the second half of this year, expected in April 2027. Shareholders holding shares on the relevant record date would take part in that payment for the full half, the company says, although the shares list in November. Like every payment in the plan, it remains subject to the approvals noted under the table below.
The 20% sold in the offer carries AED 70 million of that first payment. That equals 3.6% of the offer value, for one half year.
The company has also given target dates for the later payments. The half-yearly instalments rise to AED 375 million from the 2028 financial year, as the table shows.
The five payments add up to AED 1.83 billion. The new shareholders’ part of that is AED 365 million, equal to 18.8% of the offer value.
Planned dividends after listing (in AED millions)
| Period | Amount | Target date |
|---|---|---|
| H2 2026 | 350 | Apr 2027 |
| H1 2027 | 362.5 | Oct 2027 |
| H2 2027 | 362.5 | Apr 2028 |
| H1 2028 | 375 | Oct 2028 |
| H2 2028 | 375 | Apr 2029 |
Targets as the company prints them; each payment is subject to Board recommendation, shareholder approval and the availability of distributable reserves. The 2026 total excludes an AED 100 million pre-IPO dividend paid in September 2026.
Yield on the final price
| Year | Dividend, AED m | Yield |
|---|---|---|
| 2026 | 700 | 7.20% |
| 2027 | 725 | 7.46% |
| 2028 | 750 | 7.72% |
Annualised guidance divided by the market value at AED 1.12. The company’s own figure for 2027 is an estimated 7.5%.
Ground rents carry the valuation
Dubai Investments Park, set out earlier, covers 23 million square metres, of which 17.1 million is gross leasable land. Ground lease occupancy was 99.9% at 30 June, according to DIP Holding’s IPO website.
Average occupancy from 2020 to 2025 was an estimated 98%, the site says. Tenants lease plots, typically for 30 years or more, and build and run their own facilities.
Revenue rose 7.6% last year, and adjusted EBITDA 7.4%. The adjusted EBITDA margin stayed at 71%, and profit for the year grew faster, by 14.2%.
Growth slowed this year. As set out earlier, first-half revenue was up 1.8%, while profit rose 6.1%.
At the final price, the company is valued at 8.9 times last year’s profit and 14.3 times its adjusted EBITDA. Both ratios use market value rather than enterprise value.
The guided 2026 dividend equals 64% of last year’s profit. Measured against adjusted EBITDA, it is 103%.
Profit for 2025 ran AED 415 million above adjusted EBITDA, so the 8.9 times profit multiple rests partly on items that adjusted EBITDA leaves out. The company points to contractual ground rent repricing, more subleasing and moving plots to higher value uses as its routes to growth.
DIP Holding results (in AED millions)
| Measure | 2025 | H1 2026 |
|---|---|---|
| Revenue | 960 | 492 |
| Adj. EBITDA | 678 | 355 |
| Profit | 1,093 | 444 |
Year to 31 December 2025 and six months to 30 June 2026, as the company’s IPO website shows them; profit is profit for the year and for the period.
What to watch: 10 November, when successful subscribers in the First, Third and Fourth Tranches are due to be told their allocations by SMS and refunds begin; 11 November, the expected completion of the offering and first day of trading on the Dubai Financial Market, subject to market conditions and regulatory approvals; and April 2027, when the first dividend of AED 350 million is expected.
Method: figures are from Dubai Investments PJSC’s releases of 4 November 2026 (final offer price) and 19 October 2026 (intention to float) and its website (total assets at 30 June 2026), DIP Holding PLC’s IPO website and WAM’s report of 4 November 2026; percentages, ratios and per-share figures not attributed to a source are The Edge’s calculations.
Sources: Dubai Investments, DIP Holding, WAM, The Edge.
