Dubai Investments to Sell 20% of DIP Holding in Upcoming IPO
··2 min read
Dubai Investments, a UAE-based investment company, announced plans to sell 20% of DIP Holding through an initial public offering (IPO) on the Dubai Financial Market (DFM). The IPO, scheduled to open on October 27, will offer 1.74 billion existing shares and is set to close on November 3. Trading of DIP Holding shares is expected to commence on November 11, pending regulatory approvals.
Dubai Investments, the sole shareholder of DIP Holding, will sell the shares as part of its strategy to expand its businesses and for general corporate purposes. The proceeds from the sale will go to Dubai Investments, while DIP Holding will not receive any funds from the offering. The IPO will be divided into four tranches, allocated to individual subscribers, professional investors, eligible employees of Dubai Investments Group, and eligible Dubai Investments shareholders.
The IPO has been confirmed to be compliant with Shariah principles by Emirates NBD and Dubai Islamic Bank. EFG Hermes UAE is acting as the joint bookrunner for the offering. The IPO is expected to provide a significant opportunity for investors to participate in the growth of DIP Holding, which has shown strong financial performance.
DIP Holding reported revenue of $261.4 million and adjusted EBITDA of $184.6 million in 2025. In the first half of 2026, the company's revenue increased to $134 million, with an adjusted EBITDA of $96.7 million, resulting in a 72% adjusted EBITDA margin and a robust cash conversion rate of 97%. The company has identified several avenues for future growth, including contractual ground rent repricing, increasing subleasing activity, and repositioning plots toward higher-value uses.
DIP Holding anticipates paying annualized dividends of $190.6 million for 2026, with an expected increase to $197.5 million for the following year. The company's cash-generative business model and long track record of cash generation and distributions support this outlook.
**Context:** This IPO marks a significant development in the Dubai financial market, providing investors with an opportunity to engage with a company that has demonstrated strong financial performance and growth potential. The offering also underscores Dubai Investments' strategic initiatives to expand its business and leverage the capital markets for growth.
