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The investment firm, Dubai Holding said on Monday it will raise the size of residential REIT’s initial public offering to 15 per cent of issued unit capital, up from the earlier plan of 12.5 per cent.
One of the largest landowners and real estate developers in the UAE, the company is offering a stake in its REIT at a price ranging from Dh1.07 to Dh1.10 per unit.
Read-Dubai Residential REIT sets IPO price range, eyes up to Dhs1.79bn raise
Based on revised offering size, it is seeking to raise up to Dh2.15bn ($585.45m), the company said.
That range values the REIT at up to $3.9bn.
The Gulf’s business and tourism hub, Dubai has experienced a post-pandemic property boom, fuelled by foreign investment and government-led residency reforms.
The government has made significant effort to reduce debt, strengthen property market regulations, and merge major state-owned real estate firms to avoid the pitfalls of previous boom and bust cycles in the sector.
Despite a robust pipeline of possible listings, Dubai Residential REIT will be the emirate’s first since Talabat in December, and only the second in the United Arab Emirates this year.
The institutional book-building subscription period for the IPO will close on May 20, according to the company, with trading set to begin on or around May 28.
