DIP Holding raises Dh1.9 billion through 20% stake sale amid strong demand, set to list on November 11.
Dubai: DIP Holding has priced its initial public offering (IPO) at Dh1.12 per share, raising approximately Dh1.9 billion in the UAE’s first IPO of 2026. The shares are expected to begin trading on the Dubai Financial Market (DFM) on November 11.
Subscriptions closed on November 3, with the company announcing the final offer price on November 4. The offering was several times oversubscribed across the price range, attracting strong interest from local, regional and international investors, the company said in a press release.
DIP Holding had set an indicative price range of Dh1.10 to Dh1.15 per share on October 27. The final price of Dh1.12 values the company at Dh9.7 billion, within its previously indicated valuation range of Dh9.5 billion to Dh10 billion.
Key numbers at a glance
- Final offer price: Dh1.12 per share
- Offering size: Dh1.9 billion
- Market value at listing: Dh9.7 billion
- Shares sold: 1,735,243,300, representing 20 per cent of the company
- Dubai Investments’ stake after the sale: 80 per cent
- Implied dividend yield: About 7.5 per cent
- Expected 2027 dividend: Dh725 million
- Allocation date: November 10
- Expected listing date: November 11
- Trading symbol: DIP
Who gets the proceeds?
Dubai Investments PJSC is selling existing shares in DIP Holding, meaning it will receive the net proceeds from the IPO. DIP Holding will not receive any of the funds raised through the offering.
Dubai Investments will retain an 80 per cent stake in the company following the sale. Both parties are subject to a 180-day lock-up period after the listing.
Khalid Jassim Bin Kalban, Chairman of DIP Holding, described the strong market response as a milestone for Dubai’s capital markets.
“The strong response demonstrates the resilience and depth of Dubai’s capital markets and the confidence investors place in high-quality UAE businesses. We are proud to play a part in this important moment and look ahead with excitement and conviction to DIP Holding’s next chapter,” he said.
Omar AlMesmar, Chief Executive Officer of DIP Holding, said the company would now focus on executing its growth strategy.
“We enter this next chapter with a clear growth strategy, a strong track record and confidence in our ability to execute. Our priority remains delivering sustainable growth, strong cash generation and long-term returns for all shareholders,” he added.
Dividends drive the pitch
DIP Holding expects to distribute annualised dividends of Dh700 million ($191 million) for 2026, Dh725 million for 2027 and Dh750 million ($204 million) for 2028. Dividends are planned to be paid twice a year, subject to board and shareholder approval.
The first post-IPO payment of Dh350 million ($95 million) is scheduled for April 2027 and will cover the second half of 2026. This means new investors will be eligible for the full half-year distribution.
The company then plans to pay Dh362.5 million in October 2027, followed by the same amount in April 2028.
What happens next?
Individual subscribers, eligible Dubai Investments employees and eligible Dubai Investments shareholders will be notified of their allocations by SMS on November 10. Refunds of excess subscription funds will also be processed that day. The minimum subscription amount for the public tranche was Dh5,000.
The Internal Shariah Supervision Committees of Emirates NBD and Dubai Islamic Bank confirmed that the offering complies with Shariah principles.
Citi, Emirates NBD Capital and HSBC acted as joint global coordinators for the IPO.
Investors will now turn their attention to DIP Holding’s debut on the Dubai Financial Market, scheduled for November 11.
