Dubai Holding, the investment firm owned by the emirate’s ruler, said on Monday it will raise the size of residential REIT’s initial public offering to 15% of issued unit capital, up from the earlier plan of 12.5%.
One of the largest landowners and real estate developers in the UAE, the company is offering a stake in its REIT at a price ranging from 1.07 dirhams to 1.10 dirhams per unit.
Based on revised offering size, it is seeking to raise up to 2.15 billion dirham ($585.45 million), the company said.
That range values the REIT at up to $3.9 billion.
The Gulf’s business and tourism hub, Dubai has experienced a post-pandemic property boom, fuelled by foreign investment and government-led residency reforms.
The government has made significant effort to reduce debt, strengthen property market regulations, and merge major state-owned real estate firms to avoid the pitfalls of previous boom and bust cycles in the sector.
Despite a robust pipeline of possible listings, Dubai Residential REIT will be the emirate’s first since Talabat TALABAT.DU in December, and only the second in the United Arab Emirates this year.
The institutional book-building subscription period for the IPO will close on May 20, according to the company, with trading set to begin on or around May 28.
Reuters
