DIP Holding launches UAE’s first IPO of 2026, targets up to Dh10bn valuation

Dubai Investments subsidiary DIP Holding has opened subscriptions for its initial public offering on the Dubai Financial Market, setting a price range of Dh1.10 to Dh1.15 per share. The move values the company at between Dh9.5 billion and Dh10 billion, and marks the first IPO in the UAE this year.

IPO details and pricing

Dubai Investments will sell around 1.74 billion existing shares, equal to 20 per cent of DIP Holding’s issued capital. The offering is expected to raise between Dh1.9 billion and Dh2 billion, depending on the final price. Subscriptions for individual investors, professional investors, eligible Dubai Investments employees and qualifying shareholders of the parent company will remain open until 3 November 2026.

The final offer price is due to be announced on 4 November, with shares scheduled to begin trading on the DFM on or around 11 November, subject to regulatory approvals and market conditions.

Dividend policy and yield

DIP Holding is targeting annualised cash dividends of Dh700 million for 2026, Dh725 million for 2027 and Dh750 million for 2028. Based on the proposed 2027 dividend, the offer price range implies an indicative dividend yield of approximately 7.27 per cent at the upper end and 7.60 per cent at the lower end.

The company plans to distribute dividends twice a year, subject to board recommendations, shareholder approval and other conditions. Its first post-listing dividend payment of Dh350 million, covering the second half of 2026, is expected in April 2027. Eligible shareholders will receive the full second-half 2026 dividend, not just the period after listing.

For the 2027 financial year, DIP Holding expects to pay Dh362.5 million in October 2027 and another Dh362.5 million in April 2028. In 2028, it plans two equal payments of Dh375 million in October 2028 and April 2029. From 2029 onwards, the company expects to maintain annualised dividends at or above the 2028 level.

Share allocation and subscription process

The offering is divided into four tranches: 92 per cent of shares go to professional investors, 5 per cent to individual subscribers, 1 per cent to eligible Dubai Investments employees and 2 per cent to qualifying Dubai Investments shareholders. Successful individual subscribers are guaranteed a minimum allocation of 2,000 shares, subject to prospectus terms. Eligible employees and qualifying shareholders receive a minimum of 5,000 shares, provided their subscriptions meet the required conditions.

Investors in the individual tranche must hold a valid National Investor Number with the Dubai Financial Market. For the shareholder tranche, eligibility is based on ownership of Dubai Investments shares as of 28 October, with 26 October being the last trading day to acquire shares to qualify. The final IPO price will be determined through a book-building process based on demand from professional investors.

Business overview and Shariah compliance

All shares being offered are existing shares held by Dubai Investments, meaning proceeds go to the selling shareholder rather than DIP Holding. After the IPO, Dubai Investments is expected to retain an 80 per cent stake, assuming the offering size remains unchanged. The selling shareholder may amend the offering size before subscriptions close, subject to regulatory approval.

DIP Holding is incorporated in the Dubai International Financial Centre and owns Dubai Investments Park Development Company, which operates Dubai Investments Park. The 23-million-square-metre development provides long-term ground leases and infrastructure services across industrial, logistics, residential and commercial properties. The business runs as a ground-rent and services platform, supporting companies and residents within one of Dubai’s established mixed-use developments.

The internal Shariah supervision committees of Emirates NBD and Dubai Islamic Bank have issued opinions confirming the offering complies with Shariah principles, although investors are advised to conduct their own assessment. Citigroup, Emirates NBD Capital and HSBC are acting as joint global coordinators for the IPO. Emirates NBD is the lead receiving bank, with other participating banks including ADCB, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates Islamic, First Abu Dhabi Bank, Al Maryah Community Bank and Wio Bank.

Final allocations and the start of refunds for eligible retail, employee and shareholder tranches are expected on 10 November, ahead of the anticipated listing on 11 November. Further details are available through the official IPO website, ipo.dipark.com.