Dubai Investments is planning an initial public offering of its Dubai Investments Park real estate business, it said on Wednesday, as more companies pursue public listings amid a real estate boom in the Gulf’s tourism and financial hub.
The investment company plans to sell a stake of up to 25% in DIP and is in talks with banks on the possible listing, it said in a bourse filing, without disclosing further details.
DIP could be valued up to $2.5 billion and Dubai Investments is looking to launch the IPO in the first quarter of next year, said two sources familiar with the matter, adding no final decisions had been made and the timing might change.
The 2,300-hectare development consists of industrial, commercial and residential spaces, including offices, hotels and homes that host over 160,000 residents and more than 5,000 tenants, according to DIP’s website.
A spokesperson for Dubai Investments told Reuters that the company currently did not have any further information to share on the valuation of DIP and the timing of the IPO.
The UAE’s IPO market has seen a string of listings from both state-backed entities and private companies in recent years, including contracting and real estate firms that are benefiting from robust housing demand and higher infrastructure spending.
Home to the world’s tallest skyscraper, Dubai has become one of the world’s fastest-growing cities, surpassing a population of four million in August, according to government estimates.
Dubai Holding, one of the country’s largest landowners and real estate developers, raised around $585 million in May through an IPO of its residential REIT DUBAIRESI.DU, while construction firm ALEC said on Monday it would float a 20% stake on the Dubai Financial Market.
Reuters
