Dubai: Dewa IPO 37 times oversubscribed; share price set at Dh2.48

It has seen an overwhelming demand of Dh315 billion from local, regional and international investors

Waheed Abbas

Published: Wed 6 Apr 2022, 1:38 PM

Last updated: Wed 6 Apr 2022, 2:10 PM

Dubai Electricity and Water Authority (Dewa) initial public offering (IPO) has seen overwhelming demand of Dh315 billion ($85.7 billion) from local, regional and international investors, excluding cornerstone and strategic investors.

The orderbook for the IPO was 37 times oversubscribed.

Advertising

The offering saw strong investor demand and oversubscription by both qualified and retail investors.

The utility services provider set the final offer price for its IPO at Dh2.48 per share.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, 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 for Dewa’s IPO reflects the trust and confidence in Dubai's entities as quality investment opportunities.

Sheikh Maktoum asserted that the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, of building the most active, diversified and distinguished economy is now reaping global confidence and sustainable growth in all sectors.

Sheikh Maktoum confirmed that "International demand for Dewa's IPO is a testament of confidence in Dubai's status as a trustworthy investment destination. Our goal is for our financial market to reflect the strength and diversity of our economy".

The strong demand for Dewa shares from international and local investors, including some of the world's largest asset managers, underlines its strength as an issuer as well as Dubai's growing recognition as an increasingly vibrant capital market.

"We are delighted to have seen incredibly strong demand for Dewa shares from local and international investors – and we are very proud that this will become the largest ever IPO in the UAE and the largest in the Europe, Middle East and Africa region so far in 2022. 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," said Saeed Mohammed Al Tayer, Managing Director & Chief Executive Officer of Dewa.

"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," he said.

Having received overwhelming demand from investors, the final offer price was set at Dh2.48 by the Government of Dubai in its capacity as the selling shareholder.

A total of 9 billion ordinary shares, representing 18 per cent of Dewa's issued share capital, were offered, which will generate approximately Dh22.3 billion (US$ 6.1 billion) of gross proceeds for the selling shareholder upon settlement. This includes commitments from cornerstone and strategic investors amounting to approximately Dh13.8 billion (US$ 3.8 billion). Following completion of the Dewa IPO, the Government of Dubai will continue to own 82 per cent of Dewa’s share capital.

ALSO READ:

Dewa IPO: Dubai issues shares worth Dh22.3 billion

Dewa IPO retail tranche raised to 760m shares

Dewa is expected to commence trading on the Dubai Financial Market on April 12 under the symbol "Dewa".

Upon listing, the company will have a market capitalisation of Dh124 billion, which will make Dewa the largest company on the DFM by market capitalisation.

Investors that participated in the UAE Retail Offering will be notified of their allocation of shares via SMS on April 11, 2022.