DIP Narrows IPO Price Range to AED 1.10 and 1.15, Demand Covers Offering in Minutes

Dubai Investments lowered the price range for offering 20% of DIP Holding shares to between AED 1.10 and 1.15 per share, which values the company upon listing at between AED 9.5 and 10 billion.

The new valuation is below management's previous estimate, which ranged between AED 10.8 and 11 billion, whereas banks had proposed a range between AED 11 and 14 billion last week.

The offering features about 1.735 billion shares, raising between AED 1.9 and 2.0 billion—equivalent to $520 to $543 million—according to a report by Enterprise AM.

Orders fully covered the offering within minutes of opening the order book, Bloomberg reported. Subscriptions are scheduled to close on November 3, with the final price announced on November 4, and trading expected to start around November 11.

What do these terms mean?

Initial Public Offering (IPO): The first offering of a company's shares to the public on a stock exchange, used to raise capital and broaden the ownership base.

Price Range: The minimum and maximum price set for an offering before determining the final price.

Stabilization Manager: An entity that intervenes by buying shares in the market post-listing to protect their price from a sharp drop over a specific period.