Tuesday, 02 January 2024 12:17 GMT

Dubai Investments Moves To Float DIP Stake Via IPO


(MENAFN- The Arabian Post)

Dubai Investments has unveiled plans to sell up to 25 per cent of its real-estate arm, Dubai Investments Park, through an initial public offering that may value the unit at $2.5 billion. The company is in discussions with banks, while key details - including exact timing - are yet to be finalised.

The mixed-use development across 2,300 hectares comprises industrial, commercial and residential zones, housing over 160,000 residents and more than 5,000 tenants. DIP lies close to Al Maktoum International Airport in Dubai, a location seen as strategically valuable for both logistics and property markets.

Latest financials from Dubai Investments show a solid performance: in the second quarter, its profit after tax rose 14.5 per cent, to AED 331.3 million, driven by higher rental income and contract revenue. Assets stood at approximately AED 22.7 billion as of end-June.

The IPO is expected during the first quarter of next year, sources say, though timing could shift depending on regulatory clearances and market conditions. Valuation estimates put DIP's worth between AED 8 billion and AED 10 billion, roughly equivalent to the $2-2.7 billion range.

Dubai's broader market shows strong appetite for property-based listings. Developers and real estate investors are capitalising on surging demand for space, both commercial and residential, as well as infrastructure spending and favourable economic policies. Government-linked and large private entities have recently listed or initiated IPOs, contributing to a vibrant equity outlook.

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The Arabian Post

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