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 – has revealed the price range and has marked the start of the subscription period for its initial public offering (IPO) on the Dubai Financial Market (DFM).
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), which would make it the largest company on the DFM by market capitalisation.
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).
The IPO subscription period starts today and runs until 2 April 2022 for the UAE Retail Offering, and 5 April 2022 for the Qualified Investor Offering.
Emirates Investment Authority, ADQ, UAE Strategic Investment Fund, Multiply Group, Alpha Dhabi Partners, and Investment Holdings Est are to become the cornerstone investors in the IPO with a total commitment of up to approximately $1.3 billion (AED 4.7 billion).
Admission of the shares to trading on the DFM is expected on 12 April 2022.
Commenting on the latest announcement, the managing director and chief executive officer of DEWA, Saeed Mohammed Al Tayer, said: “DEWA has a fundamental role to play in the growth of Dubai’s economy and is central to the Emirate’s transition to net-zero carbon emissions by 2050. 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 recognise our determination to shape a green future for Dubai.”
Al Tayer added: “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. We are looking forward to welcoming our new shareholders when we formally list in the coming weeks.”
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.
Follow us on
