Alpha Dhabi Holding PJSC, an Abu Dhabi-based conglomerate and subsidiary of the International Holding Company (IHC), has made a $99.91 million (AED 367 million) investment into the Dubai Electricity and Water Authority’s (DEWA) landmark initial public offering (IPO) through its subsidiary Alpha Dhabi Partners Holding LLC, as a cornerstone investor.
As part of the transaction, Alpha Dhabi Partners Holding LLC will acquire shares through DEWA’s IPO.
Building on its highly diversified investment portfolio, the cornerstone investment in DEWA follows the significant investments the company has recently made in other market leaders including Aldar Properties and Q Holding.
The Dubai Electricity and Water Authority PJSC (DEWA) – which is the exclusive provider of electricity and potable water in Dubai and the majority owner of Empower, the world’s largest district cooling services operator by connected capacity – revealed the price range and marked the start of the subscription period for its initial public offering (IPO) on the Dubai Financial Market (DFM) earlier this week.
DEWA has set the price range at between AED 2.25 and AED 2.48 per share. The total offering size is expected to be between $1.99 billion (AED 7.31 billion) and $2.19 billion (AED 8.06 billion), implying a market capitalisation of between $30.63 billion (AED 112.50 billion) and $ 33.76 billion (AED 124 billion).
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, subject to applicable laws and approval of the Securities and Commodities Authority (SCA).
Cornerstone investors in the DEWA IPO
Alpha Dhabi joins Emirates Investment Authority, ADQ, UAE Strategic Investment Fund, Multiply Group, and Investment Holdings Est as a cornerstone investor in the IPO.
These cornerstone investors have a total commitment of up to approximately $1.3 billion (AED 4.7 billion) in the DEWA IPO.
Alpha Dhabi continues to be a key and strategic contributor to the UAE’s economy and diversification efforts and is committed to driving continuous growth for its stakeholders through investments in market leaders that enable the company to deliver superior value to its shareholders.
Investing in DEWA, a world-class and leading integrated utilities provider with significant ESG credentials as a key enabler of Dubai’s energy transition strategy, supports Alpha Dhabi’s long-term investment strategy, the state-run news agency, Wam, reported.
With a strong balance sheet, liquidity position, and pipeline of potential investments and transactions, Alpha Dhabi is able to be agile in its continued effective deployment of capital as part of its growth strategy, while seizing opportunities to be part of flagship listings in the UAE that present significant growth potential.
The CEO of Alpha Dhabi Holding, Hamad Al Ameri, said: “DEWA’s landmark IPO is representative of the strides the UAE continues to make to diversify its economy and provides a strong platform for DEWA to build on its growth potential, supported by robust market fundamentals.
“DEWA’s strong ESG credentials and the high-interest nature of the IPO puts the UAE firmly on the global investment map and we are proud to be a cornerstone investor as part of their IPO.”
Subscription process for the DEWA IPO
As previously announced, the offering is available to the following subscribers:
- to individual and other investors and to eligible DEWA employees (as defined in the UAE Prospectus) as part of the UAE Retail Offering and;
- to professional investors and other investors in a number of countries outside the US, but including in the UAE, as part of the Qualified Investor Offering.
The completion of the Offering and Admission is currently expected to take place on 12 April 2022, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of Admission to listing and trading on the DFM.
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