The listing makes it the largest company on the Dubai Financial Market by market capitalization

"Dubai Electricity and Water" sets the price range and the start of the subscription period for its initial offering

  • DEWA: The subscription period begins on March 24 and continues until April 2, 2022 for individuals and April 5 for qualified investors.

    From the source

  • Saeed Mohammed Al Tayer: "We have received great interest from local and international investors, which reflects confidence in DEWA."

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Dubai Electricity and Water Authority, the exclusive provider of electricity and water services in the Emirate of Dubai and owner of the majority stake in the Emirates Central Cooling Systems Corporation (Empower), has announced the price range and the start of the subscription period for its initial public offering on the Dubai Financial Market.

Two experts expected that the Dubai Electricity and Water Authority's subscription would raise several times the amount it was looking to raise.

They confirmed to "Emirates Today" that the IPO is one of the distinctive quality IPOs that have received great demand from individuals and institutions alike.

price range

The authority stated that the price range of the offering shares was set from 2.25 to 2.48 dirhams per share, at a time when 3.25 billion shares would be available for public subscription, representing 6.5% of the total issued shares in the capital of Dubai Electricity and Water Authority, while the selling shareholder retained the right to increase the volume of shares. The offering at any time before the end of the subscription period, after obtaining the approval of the Securities and Commodities Authority.

All shares that will be offered for subscription represent a sale of existing shares owned by the Government of Dubai.

Subtraction size

According to the authority, the total volume of the offering is expected to range between 7.31 billion dirhams ($1.99 billion) and 8.06 billion dirhams ($2.19 billion), which means that the market value of the authority will range upon listing between 112.50 billion dirhams ($30.63 billion) and 124 billion dirhams. 00 billion dirhams ($33.76 billion), making it the largest company listed on the Dubai Financial Market in terms of market capitalization.

Subscription process

According to what was previously announced, the subscription in the offered shares will be available to individual subscribers, other investors, and qualified employees of the Dubai Electricity and Water Authority group of companies, as part of the individual subscription in the UAE;

Qualified investors and other investors in a number of countries, including the UAE, and with the exception of the United States, have a portion of the Qualified Investors subscription.

Subscription period

The Authority pointed out that the subscription period begins on March 24 (yesterday), and continues until April 2, 2022 for individual subscription, and until April 5, 2022 for qualified investors.

The final offer price will be determined through the book building process, which is expected to be announced on April 6, 2022.

The offering and listing of shares is currently expected to be completed on April 12, 2022, depending on market conditions, and obtaining relevant regulatory approvals in the UAE, including approval for listing and trading on the Dubai Financial Market.

opportunity for investors

Saeed Mohammed Al Tayer, Managing Director and CEO of Dubai Electricity and Water Authority, said that the authority plays a pivotal role in the development process and the comprehensive economic renaissance of the Emirate of Dubai, and is a major supporter of its strategy to achieve carbon neutrality by 2050.

He added, "This offering is an important opportunity for investors to participate in a unique growth story that has been inspired by the unlimited ambition of Dubai and the UAE as a whole."

He continued: “Since announcing our intention to list on the Dubai Financial Market last week, we have received great interest from local and international investors who recognize our firm determination to lay the foundations for a sustainable future for the Emirate of Dubai.

This interest also reflects confidence in Dubai Electricity and Water Authority, which keeps pace with the economic growth and population growth witnessed by Dubai, by developing a world-class competitive infrastructure, to consolidate Dubai's position as a global city, and to provide electricity and water services in accordance with the highest international standards in terms of availability, reliability and quality. And efficiency, with the application of a rational governance system on a global level that includes all the operations of the authority, at a time when we look forward to welcoming our new shareholders, after the official listing of the authority’s shares on the Dubai Financial Market in the coming weeks.”

Shaath: Strong underwriting and great confidence in the authority

Abdul Qader Shaath, Director of Al Ansari Financial Services Company, said that the Dubai Electricity and Water Authority’s IPO is the first for a long time, and there is an acceptance and thirst from investors for strong subscriptions, which are safer, being part of a government agency, so it is expected that the subscription will be covered by several times required within the first two days.

He added: "It is noticeable that funds are transferred from the financial markets in Abu Dhabi and Dubai to banks to start subscribing, especially individuals. The data also shows a great demand for the segment of institutions and companies, which indicates the great confidence in the authority."

And he indicated that the financial markets are strong, and there is an institutional appetite for buying, while the graphs show that the indicators are moving in the right direction.

Al-Khatib: The annual distributions are large

The expert in capital markets, Walid Al-Khatib, said that this IPO is one of the quality IPOs that enjoy the confidence and demand of investors, especially as it is the largest in Dubai, and the first in the government IPOs that have been announced.

He added that the announced annual distributions will be 5%, which is a large number, expecting that the amounts destined for subscription will exceed those that the Authority is looking to collect, and may even multiply several times.

He continued: "As (DEWA) announced, in the event of an increase in the demand of individuals to subscribe, the individuals' share of the offering may be increased, by deducting part of the institutions' share, or increasing the percentage of offered shares from 6.5% to 7% or 8%."

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