Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Subscriptions opened on Monday for the Follow-on Public Offering (FPO) of Al Mal Capital REIT, the first real estate investment trust (REIT) listed on the Dubai Financial Market (DFM). The offering will remain open until July 25.
The FPO aims to raise up to Dh242 million through the issuance of up to 200 million new units, priced at Dh1.125 per unit. The offer is open to both individual and institutional investors across the UAE and the GCC.
First Abu Dhabi Bank (FAB) is acting as the Lead Receiving Bank. Investors can subscribe via FAB branches, online and mobile banking (for FAB clients), through the Central Bank’s payment system, or by submitting a Manager’s cheque.
Unit allocation is expected to take place between August 1 and 8, 2025, with trading on the DFM anticipated between August 8 and 15, subject to regulatory approvals.
The proceeds from the offering will be used to acquire additional income-generating assets across the healthcare, education, and mission-critical industrial sectors. The move follows the successful IPO of Dubai Residential REIT, which raised Dh1.245 billion and was oversubscribed 26 times.
Existing unitholders on record as of June 26, 2025, will receive a priority allocation equivalent to approximately 39% of their current holdings to protect against dilution. A secondary allocation will guarantee a minimum of up to 2,000 units to eligible new investors.
Since 2023, Al Mal Capital REIT has delivered a stable performance, with an annual return of around 7%.
The REIT is managed by Al Mal Capital, a subsidiary of Dubai Investments. The Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai, is the majority shareholder in Dubai Investments.
“Al Mal Capital REIT’s follow-on offering looks like a smart move for both existing and new investors who are after stable, long-term income,” said Samer Mardini, Chief Investment Officer at a family office in Dubai.
“The pricing is fair, the structure is clear, and overall it reflects a mature, well-managed fund,” he added. “If they follow through on their plans to acquire solid, income-generating assets, there’s real potential for both the value of the fund and its dividend payouts.”
