Dubai developer Binghatti in talks with Citi, Morgan Stanley on IPO: sources
It is seeking to tap into a real estate boom in the emirate
[DUBAI] Dubai-based Binghatti Holding is in talks with banks to arrange a possible initial public offering, according to people familiar with the matter, as it seeks to tap into a real estate boom in the emirate.
The developer is working with Citigroup, Morgan Stanley, Emirates NBD and EFG Hermes on the potential listing in the United Arab Emirates, the people said, requesting anonymity to discuss private information. The timing and size of any sale have not been finalised, and a deal may not materialise, they added.
A Binghatti spokesperson said that the company does not comment on speculation. Representatives for the banks declined to comment.
The IPO plans come as Dubai’s housing market continues to surge, defying tariff turmoil and regional geopolitical tensions. Binghatti has been among the beneficiaries, reporting first-half profits of 1.82 billion dirhams (S$639 million), more than doubling from a year earlier.
Even so, analysts including Fitch Ratings warn that an influx of new housing supply could trigger a correction by 2026, while UBS Group recently said Dubai’s property market faces an “elevated” bubble risk.
The IPO would form part of Binghatti’s broader fundraising push.
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The firm recently launched an asset management arm and plans to raise a US$500 million private credit fund to lend to subcontractors and suppliers it has long worked with, chief financial officer Shehzad Janab said in an interview on Thursday (Oct 2).
Fundraising is expected to begin later this year or early next, targeting family offices and institutional investors. The developer has also secured US$460 million in commitments for a new real estate fund.
Binghatti has also raised US$1 billion through two sukuk offerings this year, joining a wave of UAE-based developers tapping Islamic debt markets. The maturities are tied to project construction timelines, chief executive officer Katralnada Binghatti said in the interview in Dubai.
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The company has pushed into luxury projects, unveiling plans for a Mercedes-branded tower and one of the world’s tallest residential buildings. Still, mid-market housing remains its core business, with high-end projects accounting for about 37 per cent of its portfolio value as of June.
The real estate boom in Dubai has spurred several property-linked listings. State-backed Investment Corp of Dubai raised US$381 million this week from the IPO of contractor Alec Holdings, while an investment vehicle controlled by the emirate’s ruler plans to list malls and commercial assets after securing US$584 million from a residential real estate investment trust in May.
Arabian Construction, online platform Dubizzle and Dubai Investments Park Development are also preparing to go public, Bloomberg News has reported.
Still, investors have previously seen the sector’s volatility firsthand, most recently with the delisting of Damac Properties in 2022 at a steep markdown from its IPO price. BLOOMBERG
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