Dubai Holding, an investment vehicle of the emirate’s ruler, has increased the offering size of its residential real estate investment trust (REIT) on the local market following high demand from local and global investors.
The offering now stands at 1.95 billion units compared to the earlier 1.63 billion units, increasing the floating to 15 percent of the REIT’s issued capital from the previous 12.5 percent, the company said in a statement on Monday.
The revised offering is expected to be between AED2.1 billion ($568 million) and AED2.15 billion based on the offer price range of AED1.07 to AED1.10 per unit.
Initially, the investment conglomerate owned by Sheikh Mohammed bin Rashid Al Maktoum, the emirate’s ruler, was going to raise up to $500 million.
The market capitalisation at listing will stand between AED13.9 billion and AED14.3 billion.
Upon listing on the Dubai Financial Market (DFM), Dham Investments, a subsidiary of Dubai Holding, will continue to own a majority 85 percent stake in the REIT.
The UAE retail tranche will remain unchanged at 162.5 million units, but the institutional offering will increase from 1.46 billion units to 1.79 billion units.
The subscription opened on May 13 and will close on May 20. The final offer price will be determined through a book-building process and announced on May 21.
The units are expected to start trading on the DFM around May 28.
Each subscriber in the retail tranche will be guaranteed a minimum allocation of 2,000 units, subject to conditions.
Citigroup, Emirates NBD and Morgan Stanley are joint global coordinators and bookrunners for the IPO.
The Dubai Residential REIT manages a portfolio of 35,700 residential units worth AED21 billion ($5.7 billion), across prime developments including City Walk, Bluewaters, Meydan Heights and International City.
The REIT reported total revenues of AED1.8 billion in 2024 and is expected to distribute at least AED1.1 billion in dividends for 2025.
