Dubai Holding increased the size of the IPO of its Dubai Residential REIT, after books were fully covered within minutes of opening last week, according to a press release (pdf). The developer is now offering a 15% stake in its REIT, up from an initial 12.5% stake, with 325 mn new units added to the IPO. This could hand it proceeds of up to AED 2.2 bn, up from AED 1.8 bn earlier, making it the largest IPO in the UAE so far this year (and the first on the DFM). It would also give it an implied market cap of up to AED 14.3 bn.

The decision to boost the size of the IPO was “driven by the strong demand from domestic and international investors and oversubscription across all tranches,” the statement said. The new units will be limited to institutional accounts.

REMEMBER- This is a closed-ended real estate investment fund, which means no additional units can be offered to investors post the initial offering. DHAM Investments, a subsidiary of Dubai Holding, will retain an 85% majority stake in the REIT following its listing on the Dubai Financial Market (DFM).

Refresher: The offering’s price range remains unchanged at AED 1.07-1.10 per unit. The real estate investment fund’s market cap will remain capped at AED 14.3 bn at listing, given that no new units were issued.

What’s next? Both retail and institutional investors (including foreign and domestic) have until later today to get their orders in, with pricing set to be finalized tomorrow through a bookbuild. Units of the REIT are due to ring the opening bell on the DFM on Wednesday, 28 May. The selling shareholder will be under a 180-day lock-up period from the first day of trading, the statement said.

ADVISORS- Emirates NBD Capital, Morgan Stanley and Citigroup are quarterbacking the transaction as joint global coordinators, with Abu Dhabi Commercial Bank, Arqaam Capital and First Abu Dhabi Bank acting as joint bookrunners on the transaction. Deloitte & Touche is auditor, while Ibrahim & Partners is legal counsel. Receiving agents include Emirates NBD Bank, Mashreq Bank, First Abu Dhabi Bank, and Emirates Islamic Bank, among others.

ALSO IN THE UAE PIPELINE:

  • Dubai Holding is said to be mulling a second IPO for a portfolio of commercial real estate assets, including malls, hotels, and theme parks.
  • ADQ-backed Etihad Airways is also planning to hit the ADX;
  • Family-owned property developer Arabian Construction Company (ACC) reportedly enlisted HSBC and First Abu Dhabi Bank to advise on its upcoming IPO due in 2H;
  • Dubizzle and Property Finder are gauging investor appetite ahead of potential listings;
  • Abu Dhabi conglomerate International Holding Company’s investment arm 2PointZero is gearing up for an IPO on the ADX;
  • Abu Dhabi Investment Group (ADIG) is eyeing listings for its financial unit and energy subsidiary this year;
  • Hospitality group Five Holdings also tapped advisors for a potential listing;
  • Amanat Holdings is planning to list its education and healthcare units;
  • PIF-backed California firm CloudKitchens is reportedly eyeing an IPO in Saudi and/or the UAE for its Middle East unit, while Dubai-based grocery ecommerce platform Kibsons International plans to IPO in the next few years;
  • Shisha producer Advanced Inhalation Ritual is also rumored to potentially IPO.
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