In response to strong demand from investors and the subscription coverage from all segments of subscribers

DEWA increases the number of shares available for subscription to 8.5 billion shares

Dubai Electricity and Water Authority (DEWA) announced, after obtaining the approval of the Securities and Commodities Authority, that it has exercised its right to increase the number of shares available for subscription in its initial public offering, from 3.250 billion ordinary shares to 8.5 billion ordinary shares, which means that the proportion of shares Which will be available for trading after listing, will represent 17% of the total issued shares in the capital of the Authority, with the Dubai government retaining ownership of 83% of its capital.

The authority confirmed in a statement that the decision to increase the size of the offering comes in response to the strong demand from investors, and the subscription coverage from all segments of subscribers.

Investors segment

Dubai Electricity and Water Authority revealed that it obtained the approval of the Securities and Commodities Authority, to increase the number of shares available to the qualified investors segment (including new strategic investors) from 5.9% (i.e. up to 2,925 billion shares) to up to 16.4% of the capital. Company (up to 8,175 billion shares).

subtraction ratio

With the exception of new strategic investors, who will be subject to a “ban sale” period for their shares ranging between 180 and 365 days, the offering percentage of the company’s total capital (including the percentage subscribed by the main investors as previously announced) will rise from 6.5% to 10%, at a time when there will be no There is a change in the number of shares available for the first and third tranches, which are allocated to individual subscribers and qualified employees of the Authority.

Excellent value

According to DEWA, ​​the increase in the size of the offering was determined by the Dubai government, as the selling shareholder, after the Dubai Electricity and Water Authority decided to set the price range of the offering shares between 2.25 and 2.48 dirhams per share on March 24, 2022, which provides investors with value Excellent, reflecting the firm confidence of the Dubai Government in the authority's ability to achieve sustainable growth in the long term.

The decision also confirms Dubai Electricity and Water Authority's keenness to support the stock's trading in the market after listing, as a priority for it.

Subscription period

The Dubai Electricity and Water Authority confirmed that there will be no change in the subscription period for the initial public offering of the authority, which lasts until April 2, 2022 for individual subscription in the UAE, and until April 5 for qualified local and international investors.

It is expected to complete the listing of the shares of "Dubai Electricity and Water" and start trading on the Dubai Financial Market on or around April 12, 2022.

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