Dubai Residential REIT, managed by DHAM REIT Management LLC, has priced its initial public offering (IPO) at AED 1.10 per unit following overwhelming investor demand, setting the stage for a market capitalisation of AED 14.3 billion (USD 3.9 billion) upon listing on the Dubai Financial Market.
The offering drew over AED 56 billion (USD 15 billion) in total demand, prompting an increase in the offering size from 12.5% to 15% of the REIT’s total issued unit capital. This translated to the sale of 1.95 billion units and raised AED 2.145 billion (USD 584 million), with the final offer price set at the top of the announced range. Oversubscription exceeded 26 times.
The strong response reflects growing confidence in Dubai’s real estate sector and its maturing capital markets. Dubai Holding Group CEO Amit Kaushal said the demand affirms investor trust in the company’s strategy and in the UAE’s long-term economic vision. Dubai Residential REIT’s portfolio includes 35,700 residential units, boasting near-full occupancy and high tenant retention.
Following the IPO, DHAM Investments LLC, a Dubai Holding subsidiary and the sole selling unitholder, will retain an 85% stake in the REIT. Trading of the units under the symbol “DUBAIRESI” is expected to begin on or around 28 May 2025, pending regulatory approvals.
Retail investors will receive allocation notifications and refunds starting 26 May. Dubai Residential REIT plans to distribute dividends semi-annually, beginning September 2025, with payouts expected to equal at least 80% of annual profit before fair value changes.
The offering is supported by major financial institutions, including Citigroup, Emirates NBD Capital, and Morgan Stanley, as joint global coordinators and bookrunners.
News Source: Emirates News Agency
