Dubai Residential REIT’s unit price jumped 13.6% on its DFM debut yesterday, closing at AED 1.25 apiece, according to market data. The REIT hit an intraday high of AED 1.31 per unit — 19.1% higher than its debut price of AED 1.10 apiece.

The AED 2.1 bn IPO is the first in Dubai this year, and the second in the UAE overall, following Alpha Data’s ADX debut in March. It is also the GCC’s first pure-play residential leasing fund to hit the market.

REFRESHER- State-owned conglomerate Dubai Holding floated a 15% stake in the REIT, good for 1.95 bn secondary units at AED 1.10 apiece, the top of the range it was guiding on. The offering was upsized from 12.5% after being more than 26x oversubscribed with demand exceeding AED 56 bn (c. USD 15 bn).

The positive first-day performance comes following several lackluster debuts last year, namely from Talabat, Lulu Retail and Alef Education, despite IPOs being consistently oversubscribed, with pricing at the high end of the range due to high demand.

ADVISORS- Emirates NBD Capital, Morgan Stanley and Citigroup acted 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.
Tags: