Dubai Holding has announced the successful completion of the book building and subscription process for the initial public offering of Dubai Residential REIT on the Dubai Financial Market.
The final offer price has been set at AED 1.10 per unit, implying a market capitalisation upon listing of AED 14.3 billion.
A total of 1.95 billion units were offered, and demand was overwhelming. The IPO was oversubscribed more than 26 times, attracting over AED 56 billion in gross demand from local, regional and international investors.
Due to the strong interest, the offer size was increased from 12.5 per cent to 15 per cent of Dubai Residential REIT's total issued unit capital.
Reflecting the exceptionally strong demand, the final offer price was set at the top end of the price range, enabling the company to raise over AED 2.1 billion through the IPO.
The final price suggests a projected gross dividend yield of 7.7 per cent for 2025.
The completion of the offering and admission of units to trading on the Dubai Financial Market will take place on or around May 28, under the ticker symbol 'DUBAIRESI'.
"We are confident in the ability of Dubai Residential REIT to deliver sustainable, long-term performance and, as we look ahead, our focus remains firmly on shaping the future of urban living in Dubai and contributing to the city’s continued evolution as a global hub for investment, innovation and high-quality living," said Amit Kaushal, Group Chief Executive Officer of Dubai Holding.
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