State-owned utility service provider, Dubai Electricity and Water Authority has increased the number of shares offered in the First Tranche (Retail Tranche) of its initial public offering (IPO) to 18 percent, following the approval of the UAE Securities and Commodities Authority (SCA).
Following significant demand and oversubscription from retail investors, the Dubai government decided to increase the size of the Retail Tranche from 260 million shares to 760 million shares as a sole shareholder.
With this, the number of shares offered in the DEWA IPO has increased from 8.5 billion ordinary shares to 9 billion ordinary shares, which will result in a free float of 18 percent of DEWA’s share capital and the remaining 82 percent of DEWA’s share capital will continue to be owned by the Government of Dubai.
Based on the previously announced $0.61 to $0.68 price range, the Retail Tranche will be between $465.62 million and $513.22 million. Retail investors, including those who participated in the Third Tranche (DEWA Eligible Employees), represent 9.2 percent of the total upsized deal.
DEWA has also received approval from SCA to increase the size of the tranche reserved for eligible investors (including new strategic investors) from 5.9 percent to 16.4 percent of the company’s share capital.
DEWA IPO subscription period for UAE retail investors expires on 2nd April 2022, while eligible domestic and international institutional investors have until 5 April 2022. DEWA is expected to list on the Dubai Financial Markets (DFM) in the second week of April 2022.
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