REIT Launches Follow-on Public Offering in UAE

Al Mal Capital REIT is offering a follow-on public offering (FPO) on the Dubai Financial Market (DFM), aiming to raise up to Dh242 million. The offering involves 220 million new units priced at Dh1.125 each, including a subscription fee. This marks the second REIT offering on the DFM this year, following the successful IPO of Dubai Residential REIT. The FPO is open to both retail and institutional investors in the UAE and GCC, with subscriptions closing on July 25.

The REIT has been providing a 7% distributed return since 2023, with its real estate portfolio currently fully occupied and stable lease rentals. The average remaining lease term is approximately 20 years. The company aims to use the new funds to acquire more income-generating assets in sectors like healthcare, education, and essential industrial properties.

Existing Al Mal Capital REIT unitholders have priority access to the new units, with the opportunity to subscribe to maintain their ownership share. A minimum guaranteed allocation of up to 2,000 units per eligible new subscriber will be available. The allocation of new units is expected between August 1-8, with trading commencing between August 8-15.