Orders for DIP Holding’s initial public offering covered the entire deal within minutes of books opening on Tuesday, Bloomberg reported.
Dubai Investments is selling about 1.74 billion existing shares, or 20% of the Dubai Investments Park landlord, at AED1.10 to AED1.15 each. The range values DIP Holding at AED9.5 billion to AED10 billion and puts the offering at up to AED2 billion.
The valuation is 7% to 13% below the AED10.8 billion to AED11 billion that management had previously placed on the unit, Enterprise calculated. It said the range implies a dividend yield of 7.27% to 7.60%.
Dubai Investments has committed to about AED2.2 billion in dividends over three years, according to Enterprise.
Subscription runs until November 3. The final offer price is due on November 4, and the shares are expected to start trading on the Dubai Financial Market on or around November 11, subject to regulatory approvals and market conditions.
Enterprise said DIP Holding is the first UAE listing since the war froze the region’s IPO pipeline.
Dubai Investments will keep an 80% stake after the sale unless the offer size changes.
It has appointed xCube as stabilization manager. xCube will hold 10% of the offering, about 173.5 million shares, to buy stock if the price falls below the final offer price in the first 30 days of trading.
Citi, Emirates NBD Capital and HSBC are joint global coordinators on the deal.
