The Dubai Electricity and Water Authority (DEWA) has set the final offer price for its IPO at AED2.48 per share and has marked the completion of the book building and subscription process for its initial public offering (IPO).
A total of nine billion ordinary shares, representing 18 percent of DEWA’s issued share capital, were offered, which will generate approximately $6.1 billion (AED 22.3 billion) of gross proceeds for the Government of Dubai in its capacity as the selling shareholder, upon settlement.
This includes commitments from cornerstone and strategic investors amounting to approximately $3.8 billion (AED 13.8 billion).
Following completion of the DEWA IPO, the Government of Dubai will continue to own 82 percent of DEWA’s share capital.
Upon completion, the DEWA IPO will become the largest ever IPO in the UAE and the largest in the Europe, Middle East, and Africa (EMEA) region, thus far, in 2022.
The offering saw strong investor demand and oversubscription for both the qualified investor offering and the UAE retail offering.
DEWA sees strong demand from local, international investors
Total demand for DEWA shares amounted to $85.7 billion (AED 315 billion). Excluding cornerstone and strategic investors, the orderbook for the IPO was 37 times oversubscribed.
Upon listing, the company will have a market capitalisation of $33.75 billion (AED 124 billion), which will make DEWA the largest company on the Dubai Financial Market (DFM) by market capitalisation.
DEWA is expected to commence trading on the Dubai Financial Market (DFM) on 12 April 2022, under the symbol DEWA and ISIN “AED001801011”.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum (above), the Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance and Chair of the Securities and Exchange Higher Committee, stressed that the high international demand on DEWA’s IPO reflects the trust and confidence in Dubai’s entities as quality investment opportunities.
He asserted that the vision of Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, of building the most active, diversified, and distinguished economy is now reaping global confidence and sustainable growth in all sectors.
The strong demand for DEWA shares from international and local investors, including some of the world’s largest asset managers, underlines the strength of DEWA as an issuer as well as Dubai’s growing recognition as an increasingly vibrant capital market.
The managing director and chief executive officer of DEWA, Saeed Mohammed Al Tayer (above), said: “We are delighted to have seen incredibly strong demand for DEWA shares from local and international investors. This level of interest is not only indicative of DEWA’s status as a world-class provider of utilities but also underlines the attractiveness of Dubai as a global capital market.
“As we look ahead, DEWA will remain focused on creating value for all its stakeholders by meeting the increasing demand for electricity and water in Dubai and by supporting the Emirate’s energy transition to net zero by 2050.”
Investors that participated in the UAE retail offering will be notified of their allocation of shares via SMS on 11 April 2022.
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