DIP Holding Plc, a subsidiary of Dubai Investments, saw strong investor demand for its initial public offering (IPO), with the shares on offer fully subscribed within minutes of the subscription period opening. Orders quickly exceeded the number of available shares in the offering, which could raise up to AED 2 billion.
Subscription opened on Tuesday, October 27, 2026, and will remain available to all four investor tranches until November 3, ahead of the company’s planned listing on the Dubai Financial Market (DFM).
The company has set the IPO price range at AED 1.10 to AED 1.15 per share, giving DIP Holding an expected market valuation of between AED 9.5 billion and AED 10 billion upon listing.
The offering comprises approximately 1.735 billion shares, representing 20% of the company’s issued share capital. Its total value is expected to range from AED 1.9 billion to AED 2 billion, equivalent to approximately $520 million to $543 million.
All shares being offered are existing shares held by Dubai Investments, which will receive the proceeds from the sale. Following completion of the IPO, Dubai Investments will retain an 80% stake in DIP Holding, assuming the offering size remains unchanged.
Cash Dividend Distributions
DIP Holding plans to distribute annual cash dividends of AED 700 million for the 2026 financial year, followed by AED 725 million in 2027 and AED 750 million in 2028, in line with the dividend policy outlined in its IPO prospectus.
The company expects to make its first dividend payment in April 2027, distributing AED 350 million for the entire second half of 2026. This will be followed by a payment of AED 362.5 million in October 2027 and another distribution of the same amount in April 2028.
Based on the proposed price range and the AED 725 million dividend planned for 2027, the offering represents an expected dividend yield of between 7.27% and 7.60%.
From 2029 onward, the company expects to maintain annual dividend distributions at or above the level planned for 2028.
Dividend payments will remain subject to recommendations from the board of directors, shareholder approval and the availability of distributable reserves.
The final offer price is expected to be announced on November 4, 2026, following completion of the bookbuilding process.
DIP Holding shares are currently expected to begin trading on the Dubai Financial Market on November 11, subject to market conditions and the necessary regulatory approvals.
Price Stabilization
Dubai Investments has appointed XCube as the price stabilization manager for the offering, with approximately 173.5 million shares, representing 10% of the total offer shares, allocated under the relevant arrangements.
The mechanism allows the stabilization manager to purchase shares in the market if their trading price falls below the final offer price during a period of up to 30 calendar days from the first day of trading, in accordance with Dubai Financial Market regulations.
Separately, the internal Sharia supervisory committees of Emirates NBD and Dubai Islamic Bank have confirmed that, in their respective views, the offering complies with Islamic Sharia principles. Investors are nevertheless advised to conduct their own assessments to determine whether the offering meets their investment requirements.
Emirates NBD has been appointed as the lead receiving bank for subscription applications, alongside several local and international financial institutions participating in the management of the offering.
