{"id":103814,"date":"2025-05-20T00:00:00","date_gmt":"2025-05-20T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/dubai-holding-upsizes-residential-reit-ipo-on-strong-demand\/"},"modified":"2025-05-20T00:00:00","modified_gmt":"2025-05-20T00:00:00","slug":"dubai-holding-upsizes-residential-reit-ipo-on-strong-demand","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/05\/20\/dubai-holding-upsizes-residential-reit-ipo-on-strong-demand\/","title":{"rendered":"Dubai Holding upsizes residential REIT IPO on strong demand"},"content":{"rendered":"

Du<\/strong>bai Holding increased the size of the IPO of its Dubai Residential REIT<\/strong>, after books were fully covered within minutes<\/a> of opening last week, according to a press release (pdf)<\/a>. 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. <\/p>\n

The decision to boost the size of the IPO was <\/strong>\u201cdriven by the strong demand from domestic and international investors and oversubscription across all tranches<\/strong>,\u201d the statement said. The new units will be limited to institutional accounts.<\/span><\/p>\n

REMEMBER- <\/strong>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).<\/p>\n

Refresher: <\/strong>The offering\u2019s price range remains unchanged at AED 1.07-1.10 per unit. The real estate investment fund\u2019s market cap will remain capped at AED 14.3 bn at listing, given that no new units were issued. <\/p>\n

What\u2019s next? <\/strong>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.<\/p>\n

ADVISORS- <\/strong>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.<\/p>\n

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