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).
All shares to be offered represent sale of existing shares held by the Government of Dubai.
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.
The internal Sharia supervision committees of Emirates NBD PJSC and HSBC Bank Middle
East Limited have confirmed that, in their view, the offering is compliant with Shariah principles.
The Government of Dubai has retained the right to increase the size of the offering at any time, subject to SCA approval, before the end of the subscription period.
In terms of capital structure dividend policies, DEWA intends to pay dividends twice each fiscal year – in April and October of each year – after the offering. It expects to pay a minimum dividend amount of AED 6.2 billion per annum, over the next five years, from October 2022 to April 2027.
Details about DEWA
DEWA, now DEWA PJSC, was created in 1992 as a result of the merger of the Dubai Electricity Company and the Dubai Water Department.
It is now a globally-leading fully integrated utilities company and the exclusive provider of electricity and potable water to Dubai’s 3.5 million residents and millions of people who visit every year.
DEWA 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
DEWA is a key enabler of Dubai’s energy transition to net zero and 100 percent clean energy by 2050, and it is focused on enabling a clean future for its customers and communities.
Commenting on the DEWA IPO, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, said: “Today represents a significant moment in the history of DEWA and is an important step towards
achieving our vision for capital markets in Dubai. As a central component of the Dubai economy, DEWA has a critical role to play in supporting the future growth of the Emirate and its transition to a net zero economy by 2050.
“For DEWA’s potential new shareholders, this offering is an opportunity to be part
of the future of Dubai and have a stake in an organisation that has an unparalleled track record of technological innovation and operational excellence.”
A “turning point for Dubai’s capital market”
The DEWA IPO is also in line with the directives of Sheikh Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister and Ruler of Dubai, and is part of the Dubai Markets Supervisory Committee’s strategy to increase the size of the Emirate’s stock market to $816.74 billion (AED 3 trillion) in the coming period.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum indicated that DEWA’s landmark listing will mark a turning point for Dubai’s capital market and contribute to ushering in a new phase of enhancements of its strong performance.
The managing director and CEO of DEWA, HE Saeed Mohammed Al Tayer (below) said: “Dubai’s wise leadership has enabled the Emirate to grow into a thriving, diversified global economy in just a few decades. This is a historical moment for DEWA as the first government entity in Dubai to go public.
“It reflects the immense faith and confidence by our wise leadership and the government of Dubai. As the exclusive provider of electricity and water services to Dubai, DEWA is incredibly proud to have played a part in the success of the Emirate.”
Al Tayer added: “Dubai’s fast paced development has resulted in a rapid increase in the demand for electricity and water. And DEWA has grown along with Dubai’s expanding economy, population, and world-class competitive infrastructure, emphasising the Emirate’s position as a global city.
“DEWA is therefore both integral to, and benefits from, Dubai’s past and current economic growth. We are playing a key role in Dubai’s green energy transition process. With the highest standards of efficiency, quality, and availability, DEWA is ready to meet the increasing demand for electricity and water in the Emirate, as the population is expected to grow from around 3.5 million people today to 5.8 million people by 2040.”
DEWA supports the Dubai Net Zero Carbon Emissions Strategy 2050 and is well-aligned to the Dubai Clean Energy Strategy 2050, which aims to provide 100 percent of Dubai’s energy production capacity from clean energy sources by 2050.
Al Tayer concluded: “Looking ahead, DEWA will support the UAE’s strategic growth ambitions by providing Dubai’s millions of residents and visitors with world-class services and innovative energy solutions. And that in turn will enrich lives while ensuring the happiness and wellbeing of all our stakeholders.”
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