State-owned utility Dubai Electricity & Water Authority has picked banks to arrange what could be the biggest-ever listing in the Gulf emirate, according to people with knowledge of the matter.
DEWA has chosen Citigroup, HSBC Holdings and Emirates NBD Bank to lead the offering, the people said, asking not to be identified because the information is private.
It is planning to seek a valuation of around $20 billion to $25 billion, according to one of the people.
The Dubai government said in early November that it wants to sell shares in 10 government-backed companies, part of a bid to revive trading volumes and catch up with rival exchanges in Abu Dhabi and Riyadh.
It’s been encouraging private and family-owned businesses to follow suit to help deepen the capital market in the Middle Eastern financial centre.
DEWA has also selected other banks to work on the share sale in more junior roles, the people said. While Dubai firms are required to sell at least 25 percent of their shares in an IPO, the utility may try to list a smaller amount at first, the people said.
The company caters to Dubai’s 3.4 million residents and had 12.3 gigawatts of power capacity last year, according to its website. It reported net income of $1.3 billion for 2019.
Deliberations are ongoing, and details of the planned offering could change, the people said. Representatives for DEWA, HSBC and ENBD didn’t immediately respond to requests for comment, while a spokesperson for Citigroup declined to comment.
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