UAE investors get another stock offering - an 'FPO' from Al Mal Capital REIT

07/07/2025 06:33 AST

Investors in the UAE get another shot at buying shares through a stock market float, and one that's tied to the fortunes of Dubai and UAE real estate sector.

DFM-listed Al Mal Capital REIT has opened subscriptions for its 'follow-on public offering', whereby it plans to raise up to Dh242 million. This will be through issuing 220 million new units priced at Dh1.125 each (including a Dh0.025 subscription fee).

This is the second REIT offering on DFM this year, after the quite successful IPO from Dubai Residential REIT. (REITs or real estate investment funds offer investors a chance to tap into the growth experienced by property assets held by them. And also into the overall sectoral growth.)

The FPO is open to retail and institutional investors in the UAE and GCC, with subscriptions open up to July 25. (A follow on offering is when a listed company offers additional shares to investors.)

Al Mal Capital REIT has been delivering a 7% distributed return since 2023, with its real estate portfolio currently having 100% occupancy with 'stable lease rentals'. The 'weighted average unexpired lease term across its assets is about 20 years'.

"The REIT continues to target consistent returns of approximately 7% for investors," said Al Mal Capital. New funds will be deployed on adding more income-generating assets in 'resilient sectors' such as healthcare, education, and mission-critical industrials.

First preference for existing REIT unitholders
A priority allocation will be available to existing investors as of a record date of June 26.

These investors may subscribe to approximately 39% or more of their current holdings to maintain their ownership share and avoid dilution. A secondary allocation of unsubscribed units will include a minimum guaranteed allocation (MGA) of up to 2,000 units per eligible new subscriber, subject to request and availability.

The new units are expected to be allocated between 1-8 August 2025, with trading to commence between August 8-15.

Gulfnews