DIP Holding announces IPO price range, opens subscription

DUBAI / WAM

DIP Holding Plc, a subsidiary of Dubai Investments PJSC, on Tuesday announced the offer price range per share and the start of the subscription period for its initial public offering (IPO) on the Dubai Financial Market (DFM).
The price range for the offering has been set at between AED1.10 and AED1.15 per share, implying a market capitalisation at listing of between AED9.5 billion (US$2.6 billion) and AED10.0 billion (US$2.7 billion).
A total of 1,735,243,300 offer shares, equivalent to 20 percent of DIP Holding’s issued share capital, will be offered by the selling shareholder, resulting in a total offering size of between AED1.9 billion ($520 million) and AED2.0 billion ($543 million).
All offer shares are existing shares being sold by Dubai Investments PJSC, which will receive the proceeds from the offering. Following completion of the offering, and assuming no change to the offering size, the selling shareholder will retain an 80 percent stake in DIP Holding.
The selling shareholder reserves the right to amend the size of the offering and the size of any tranche at any time prior to the end of the subscription period, at its sole discretion, subject to applicable UAE laws and approval by the Capital Market Authority.
Based on the dividend policy set out in the UAE Prospectus, DIP Holding expects to pay annualised cash dividends of AED700 million, AED725 million and AED750 million in respect of the financial years ending 31st December 2026, 2027 and 2028, respectively.
The company intends to pay dividends on a semi-annual basis, subject to the Board of Directors’ recommendation, shareholder approval, the availability of distributable reserves and other applicable considerations.
The first post-IPO dividend distribution of AED350 million, relating to the full second half of 2026, is expected to be paid in April 2027.
Accordingly, eligible shareholders will benefit from a dividend relating to the full second half of 2026, rather than only the period following admission.
The company subsequently expects to distribute AED362.5 million in October 2027, in respect of the first half of 2027, and AED362.5 million in April 2028, in respect of the second half of 2027.
Based on the expected annual dividend of AED725 million for 2027, the price range implies a dividend yield of approximately 7.27 percent at the high end and 7.60 percent at the low end of the price range.
Thereafter, the company expects to distribute AED750 million in respect of 2028, payable in two equal instalments of AED375 million in October 2028 and April 2029. From 2029 onwards, DIP Holding expects to maintain annualised dividends in line with, or above, the 2028 level.
The subscription period starts today, 27th October 2026, and closes on 3rd November 2026 for all four tranches.
The final offer price will be determined following completion of the book-building process and is expected to be announced on 4th November 2026.
The completion of the offering and admission of ordinary shares to trading on the DFM are currently expected to take place on or around 11th November 2026, subject to market conditions and obtaining the relevant regulatory approvals.
The selling shareholder and the company will each be subject to a lock-up period of 180 days following admission, subject to customary exceptions.
This is pursuant to the underwriting agreement entered into between the company, the selling shareholder and the joint bookrunners.
In connection with the offering, the selling shareholder has appointed xCube LLC as the stabilisation manager, which may, to the extent permitted by applicable laws and the DFM Trading Rules, undertake stabilisation transactions with a view to supporting the market price of the shares.
A total of 173,524,330 offer shares, representing 10 percent of the offering, will be allocated to investors as part of the normal allocation process.
If the share price falls below the final offer price during the period commencing on the first day of trading on the DFM and ending no later than 30 calendar days thereafter, the stabilisation manager shall use the proceeds from the sale of the stabilisation shares to purchase up to an equivalent number of shares in the market at or below the final offer price. The stabilisation manager will disclose the extent of any stabilisation transactions to the market in accordance with the DFM Trading Rules.
The Internal Shariah Supervision Committees of Emirates NBD Bank PJSC and Dubai Islamic Bank PJSC have issued pronouncements confirming that, in their view, the offering is compliant with Shariah principles.
Investors should undertake their own due diligence to determine whether the offering is Shariah-compliant for their own purposes.
Citigroup Global Markets Limited, Emirates NBD Capital LLC and HSBC Bank Middle East Limited have been appointed as Joint Global Coordinators. Abu Dhabi Commercial Bank PJSC, Arqaam Capital Limited, Dubai Islamic Bank PJSC and EFG Hermes UAE Limited, acting in conjunction with EFG Hermes UAE LLC, have been appointed as Joint Bookrunners, together with the Joint Global Coordinators.
Al Mal Capital PSC has been appointed as Financial Advisor, while Emirates NBD Capital LLC has also been appointed as Listing Advisor.
Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank. Other participating Receiving Banks and their subscription channels are set out in the UAE Prospectus and the offering materials.