The Dubai Electricity and Water Authority PJSC (DEWA) has revealed its intention to float 6.5 percent of its issued share capital – totalling 3.25 billion shares – to be listed on the Dubai Financial Market (DFM).
The offering will be made available to individuals and other investors as part of the UAE retail offering, as well as to professional investors outside the US, including
the UAE, as part of the qualified investor offering.
The UAE retail offering subscription period is expected to run from 24 March 2022 to 2 April 2022, while the qualified investor offering subscription period is expected to run from 24 March 2022 to 5 April 2022.
How to subscribe
1. DFM Investor Number (NIN)
Investors or entities will need a DFM Investor Number (NIN). Those who don’t have a NIN can register for one instantly through eServices at the DFM website or on the DFM Smart Services app.
2. Read about the DEWA, its investment highlights and more
Visit the official IPO webpage to get more information about DEWA and its initial public offering, and read the prospectus.
3. Make an informed decision
After getting familiarised with the company, make an informed investment decision. Read the three tranches of application below.
4. Subscribe to the offering
Those who have decided to invest, can subscribe to the offering through one of the receiving banks.
Each receiving bank will have their own channels, but they typically include online, in a branch, or through your bank relationship manager.
Emirates NBD Bank PJSC is the lead receiving bank. The other receiving banks are Abu Dhabi Commercial Bank, Ajman Bank, Al Maryah Community Bank, First Abu Dhabi Bank, Mashreq Bank, ADIB, Dubai Islamic Bank, Emirates Islamic Bank, and Sharjah Islamic Bank.
5. Allocation of shares
Once the shares have been allocated, individuals and entities may or may not receive full allocation of their order. Any excesses noted will be refunded. EmiratesNBD has stated that refunds will come in by 11 April 2022.
Three tranches of application
First tranche of applications
The first tranche offer will consist of 8 percent of the 3.25 billion shares on offer, representing 260 million shares.
This first tranche will be restricted to individual subscribers – including assessed professional investors – who do not participate in the second tranche – who have a bank account, with the exception of US residents.
There are no other citizenship or residence requirements to qualify as an individual subscriber. Minors are permitted to apply for offer shares in accordance with the procedures applied by the receiving banks and the laws in force in this regard.
Other investors for the first tranche – such as companies and establishments who have a bank account – can also participate on the condition that they do not participate in the second or third tranches.
The minimum application size for subscribers in the first tranche is AED 5,000 with any additional application in increments of at least AED 1,000.
Second tranche of applications
The second tranche will include 90 percent of the 3.25 billion shares on offer, representing 2.925 billion shares.
This second tranche will be restricted to professional investors, as defined in the SCA Board of Directors’ Chairman Decision No.13/R.M of 2021.
Deemed professional investors include
a. international corporations and organisations whose members are state, central banks, or national monetary authorities;
b. governments, government institutions, their investment and non-investment bodies and companies wholly owned by them;
c. central banks or national monetary authorities in any country, state or legal authority;
d. capital market institutions licensed by the SCA or regulated by a supervisory authority equivalent to the SCA;
e. financial institutions;
f. regulated financial institutions, local or foreign mutual investment funds, regulated pension fund management companies and regulated pension funds;
g. any entity whose main activity represents investment in financial instruments, asset securitisation, or financial transactions;
h. any company whose shares are listed or accepted to trade in any market of an IOSCO member country;
i. a trustee of a trust which has, during the past 12 months, assets of AED 35,000,000 or more;
j. licensed family offices with assets of AED 15,000,000 or more;
k. joint ventures and associations which have or had, at any time during the past two years, net assets of AED 25,000,000 or more, excluding partner and shareholder loans;
l. a body corporate who fulfills on the date of its last financial statements a “large undertaking” test, whereby it fulfils at least two of the following requirements:
- holds total assets of AED 75,000,000 or more (excluding short-term
liabilities and long-term liabilities); - has a net annual revenue of AED 150,000,000 or more; or
- an aggregate total of cash and investments on its balance sheet; or
its total equity (after deducting paid up share capital), is not less than
AED 7,000,000.
The third tranche of applications
The third tranche, which includes the final 2 percent of the 3.25 billion shares on offer, representing 65 million shares, will be restricted to eligible employees of DEWA.
If all of the offer shares in the third tranche are not fully subscribed for, the
unsubscribed offer shares will be available to the first tranche subscribers, or
alternatively – in consultation with the SCA – might either result in the extension of the closing date for the three tranches, or the closing of the offering at the level of applications received.
The minimum application size for subscribers in this Tranche is AED 5,000 with any additional application in increments of at least AED 1,000.
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