(Oct 27): DIP Holding plc drew enough demand to cover its up to US$543 million (RM2.22 billion) initial public offering within minutes of opening books, signalling strong appetite for the United Arab Emirates’ first listing since the Iran war began.

Dubai Investments PJSC is offering a 20% stake in DIP at 1.10 dirhams (RM1.22) to 1.15 dirhams apiece. At the top of the range, DIP Holding would be valued at 10 billion dirhams. Indicated demand for the offer exceeds the number of shares on offer, according to terms seen by Bloomberg News.

The company is offering investors US$592 million in dividend payouts over the next three years. Based on the expected annual payout of 725 million dirhams for 2027, the price range implies a yield of as much as 7.60%.

Some investors had called for DIP to temper its valuation expectations and offer higher payouts, closer to the roughly 9% yield from developer Emaar Properties PJSC, given geopolitical concerns, Bloomberg News has reported.

The deal comes as the Iran war amplifies a slowdown in Gulf IPO markets. Regional stocks have also come under pressure since the conflict began in late February, with Dubai’s exchange down around 5% this year.

While the IPO market has been slow, deal activity in the Middle East has continued despite the regional conflict. In just the past 24 hours, Apollo Global Management Inc. bought a stake in Mubadala Capital, the alternative asset management arm of Abu Dhabi’s US$385 billion sovereign wealth fund, while Investcorp teamed up with Saudi investors to buy a fire safety and equipment company, one of the first inbound deals in the kingdom since the war with the Iran-backed Houthis escalated.

DIP Holding owns Dubai Investments Park, a 2,300-hectare (8.9 square mile) development located close to two of Dubai’s major logistics hubs: Jebel Ali Port, which has been severely disrupted by the closure of the Strait of Hormuz, and Al Maktoum International Airport, which is undergoing a US$35 billion expansion. Among the largest mixed-use projects in the UAE, it houses warehouses, hotels, retailers, schools and healthcare facilities.

Dubai Investments’ wider portfolio includes holdings in roughly 30 businesses across industries including manufacturing, property and financial services. It has previously also earmarked Emirates Glass LLC and district-cooling company Emicool LLC as listing candidates.

The subscription period for the DIP offering will run from Oct 27 to Nov 3, and shares are expected to begin trading on Dubai’s bourse on Nov 11.

Uploaded by Arion Yeow