Dubai: Dubai Holding, through its wholly owned subsidiary DHAM REIT Management LLC, has announced an increase in the size of the initial public offering (IPO) of Dubai Residential REIT. This move follows approval from the UAE Securities and Commodities Authority (SCA) and raises the offering size to 1,950,000,000 units from the previously announced 1,625,000,000 units. As a result, 15.0% of the REIT's issued unit capital will be floated, up from the initially planned 12.5%.
According to Emirates News Agency, DHAM REIT Management LLC decided to increase the number of units due to strong demand from both domestic and international investors, leading to oversubscription across all tranches. Once listed on the Dubai Financial Market (DFM), DHAM Investments LLC, a subsidiary of Dubai Holding, will maintain a majority 85% stake in the REIT.
The offer price range remains unchanged at AED1.07 to AED1.10 per offer unit. With this revised offering size, the expected proceeds are projected to be between AED2,087 million (US$ 568 million) and AED2,145 million (US$ 584 million). This suggests a market capitalization at listing ranging from AED13.9 billion (US$ 3.8 billion) to AED14.3 billion (US$ 3.9 billion).