Dubai Holding's real estate investment trust, DHAM REIT, has increased the size of its initial public offering (IPO) to 1.95 billion units, up from the previously announced 1.625 billion, following strong demand from both local and international investors.
The adjustment means 15 percent of the REIT’s issued unit capital will now be floated, instead of the initially planned 12.5 percent. DHAM REIT Management, a subsidiary of Dubai Holding, confirmed the revised offer on Monday.
The offering, priced between AED 1.07 and AED 1.10 per unit, is now expected to raise between AED 2.087 billion and AED 2.145 billion. This implies a market capitalisation at listing of approximately AED 13.9 billion to AED 14.3 billion.
Upon listing on the Dubai Financial Market (DFM), DHAM Investments will retain an 85 percent stake in the REIT. The listing is expected to take place on or around May 28.
The IPO remains split into two tranches. The first tranche, reserved for UAE retail investors, is unchanged at 162.5 million units. It is open to individuals and eligible entities holding a National Investor Number (NIN) with the DFM. Each subscriber will be guaranteed a minimum allocation of 2,000 units, subject to availability and the terms outlined in the prospectus.
The second tranche, open to qualified institutional investors, has been increased from 1.462 billion to 1.787 billion units.
Subscriptions for both tranches began on May 13 and will close on May 20. The final offer price will be determined through a book-building process in coordination with the joint global coordinators and will be announced on May 21.
DHAM REIT also announced plans to implement a semi-annual dividend distribution policy, with payments scheduled for April and September. The first dividend is expected to be distributed in September 2025, followed by another in April 2026.
The IPO is being managed by a consortium of prominent financial institutions. Citigroup Global Markets Limited, Emirates NBD Capital, and Morgan Stanley & Co. International are acting as joint global coordinators and joint bookrunners. Emirates NBD Bank is the lead receiving bank, while Abu Dhabi Commercial Bank, Arqaam Capital (with Arqaam Securities), and First Abu Dhabi Bank are also serving as joint bookrunners.
News Source: Khaleej Times
