The utility service provider attracted Dh315 billion in demand for the IPO
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The Dubai Electricity and Water Authority (Dewa) shares rose at the market's opening on the first day of its trading at the Dubai Financial Market.
As expected, the utility services provider's shares jumped more than 21 per cent and surged above Dh3 per share on Tuesday.
Dewa had earlier priced its share at Dh2.48.
Within minutes of opening the market, Dewa's share crossed the Dh3 mark, reflecting a strong appetite for the utility service provider's shares.
Last week, Dewa raised Dh22.3 billion through its initial public offering (IPO) after an overwhelming response that saw the order book oversubscribed 37 times, excluding cornerstone and strategic investors.
Setting the final offer price at Dh2.48 per share, the utility service provider attracted Dh315 billion in demand for the IPO, including sovereign wealth funds, private funds, and 65,000 individual investors.
On Monday, Dubai's main index climbed 1.3 per cent, or 46.07 points, to 3,587.68 points ahead of Dewa's listing.
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Wael Makarem, senior market strategist for the Mena region at Exness, said Dewa shares could reinvigorate trading volumes as demand for the stock is still high.
Dewa's counter saw over 153.44 million shares changing hands within the first few minutes of trading with a total value of Dh460.7 million, becoming the most active stock on the bourse in early trade.
Overall, the DFM General Index was down 0.48 per cent at 3,569.33 points.
-waheedabbas@khaleejtimes.com
Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.