DEWA reveals IPO price range; Intends to raise up to $2.2bn

By Shilpa Annie Joseph, Official Reporter
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State-owned Dubai Electricity and Water Authority (DEWA) has announced the price range and start of the subscription period for its initial public offering (IPO) on the Dubai Financial Market (DFM).

According to the statement, the price range for the offering has been set at between $0.61 (AED 2.25) and $0.68 (AED 2.48) per share.

The total offering size is expected to be between $1.99 billion (AED7.31 billion) and $2.2 billion (AED8.06 billion), implying a market capitalization at a listing of between $30.63 billion (AED 112.50 billion) and $33.76 billion (AED 124.00 billion), which would make DEWA the largest company on the DFM by market capitalization.

The company noted that, “A total of 3.25 billion shares, equivalent to 6.5 percent of DEWA’s existing shares, will be offered, with the selling shareholder reserving the right to increase the size of the offering at any time before the end of the subscription period at its sole discretion, subject to applicable laws and approval of the Securities & Commodities Authority (SCA).”

Saeed Mohammed Al Tayer
Saeed Mohammed Al Tayer

“This IPO represents an opportunity for investors to participate in a unique growth story that is underpinned by the ambition of Dubai and the United Arab Emirates. Since announcing our intention to float on the Dubai Financial Market last week, we have received strong interest from local and international investors that recognize our determination to shape a green future for Dubai. This interest also reflects the confidence in DEWA, which keeps pace with Dubai’s expanding economy and population by developing a world-class competitive infrastructure to consolidate Dubai’s position as a global city and provide electricity and water services according to the highest global standards of availability, reliability, quality, and efficiency, while maintaining a world-class governance system and continuous record of good governance across all its operations.”

The company said that the IPO subscription period has started and it will run until 2nd April 2022 for the UAE Retail Offering and 5th April 2022 for the Qualified Investor Offering. The final offer price will be determined through a book-building process and is expected to be announced on 6th April 2022.

Emirates Investment Authority, ADQ, UAE Strategic Investment Fund, Multiply Group, Alpha Dhabi Partners, and Investment Holdings will become the cornerstone investors in the IPO with a total commitment of up to $1.3 billion (AED 4.7 billion), as per the statement.

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