The IPO of Dubai Electricity and Water becomes the largest IPO ever in the UAE

 His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, and Chairman of the Higher Committee for the Development of Capital Markets and Exchanges in Dubai, stressed that global confidence in the Dubai Electricity and Water Authority's IPO reflects the great confidence in the strong economic approach pursued by Dubai and its institutions. and its world-class infrastructure.

This came on the occasion of the successful completion of the process of building the order book and the subscription yesterday for the shares of the Dubai Electricity and Water Authority, and setting the final offer price within its initial public offering at 2.48 dirhams per share.

Dewa's subscription requests reached world records, amounting to 315 billion dirhams, with the entry of sovereign funds and global investment portfolios, and the company's value approached 124 billion dirhams.

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum stressed that: "Mohammed bin Rashid's vision of building the most active, diversified and distinguished economy is now reaping global confidence and sustainable growth in all our sectors."

His Highness added that the high demand for the initial public offering of the company's shares is evidence of the strength of Dubai's economy, which stands on solid pillars and relies on a diversified economic base.

His Highness said: "The strong local, regional and global demand for DEWA shares reflects the strength of our economy and the strength of our institutions."

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum explained that the comprehensive development vision adopted by the Supreme Committee for the Development of Financial Markets and Exchanges aims to consolidate the leading position occupied by Dubai as one of the most important financial markets at the regional and global levels by launching several listings for a group of government companies in promising sectors.

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum added: "The size of the diversity of investors in the Dewa IPO from the east and the west of the world, from individual investors and from investment funds, is a vote of confidence... Our goal is for our financial market to reflect the strength and diversity of our economy."

His Highness stressed that the Dubai Electricity and Water Authority is one of the main pillars of the emirate's economy and is a key contributor to the sustainable development strategy, pointing out that the company's initial public offering greatly contributes to supporting the Dubai Financial Market and constitutes an incentive for more local and regional international companies wishing to list. In the market.

The number of shares available in the public offering reached 9 billion shares, worth 22.3 billion dirhams, representing 18% of the company's capital, as the Dubai government retains 82% of the company's ownership.

The final allocation of approximately 50% of the offering to non-UAE investors, including approximately 30% to international investors (excluding core and strategic investors), which is a new global vote of confidence in Dubai's economy and its promising future growth.

For his part, His Excellency Saeed Mohammed Al Tayer, MD & CEO of DEWA said: “We are pleased with the strong demand and exceptional demand for DEWA’s shares from local and international investors, and are proud that this will become the largest public offering in the UAE, and the largest in the region. Europe, the Middle East and Africa since the beginning of 2022, and this turnout is a strong testimony to the unique elements that the authority enjoys as a leading global utility company, and confirms Dubai's position as a global market attracting capital.As we move towards broader horizons of growth and prosperity, DEWA will continue its commitment to achieving its strategy that focuses on achieving sustainable value for the benefit of all stakeholders by meeting the growing demand for electricity and water services in Dubai and supporting the emirate's efforts to shift to renewable and sustainable energy sources in line with Objectives of the Dubai Clean Energy Strategy 2050 and the Dubai Carbon Neutrality Strategy 2050.” Based on the high demand from investors, the Dubai government, as the selling shareholder, set the final offer price at AED 2.48 per share.

The total number of shares available for subscription in the initial public offering of Dubai Electricity and Water Authority is 9,000,000,000 ordinary shares, which represents 18% of the total issued shares in the capital of the Authority, which will ensure the achievement of total returns of 22.3 billion dirhams (6.1 billion dollars) in favor of the selling shareholder after settlement .

This includes commitments from core and strategic investors amounting to approximately 13.8 billion dirhams (US$3.8 billion).

After the completion of the offering, the Dubai government will retain ownership of 82% of the Authority's capital.

When completed, DEWA's IPO will be the largest IPO ever in the UAE, and the largest in the EMEA region since the start of 2022.

The offering witnessed strong demand, and the subscription requests exceeded the shares offered, by qualified investors and individual subscribers.

The value of the total demand for the Authority's shares amounted to 315 billion dirhams (85.7 billion dollars).

With the exception of basic and strategic investors, the authority witnessed a strong demand in the subscription order book, which exceeded the supply of shares by 37 times.

It is expected that the shares of Dubai Electricity and Water Authority will start trading on the Dubai Financial Market on April 12, 2022, under the symbol “DEWA” and the International Standard Securities Number /ISIN/ “AED001801011”.

Upon completion of the listing process, the market value of the authority will reach 124 billion dirhams, making it the largest company listed on the Dubai Financial Market in terms of market value.

It is worth noting that the subscribed investors within the retail segment will be notified of the results of the final allocation of shares via SMS on April 11, 2022.

The initial public offering of Dubai Electricity and Water Authority is the first of its kind, after the Supreme Committee for the Development of Financial Markets and Exchanges announced the inclusion of 10 government and semi-governmental companies in the Dubai Financial Market as part of its strategy to take a wide range of measures and policies to support the financial sector in the emirate in an unparalleled manner. unprecedented, and stimulating the pace of growth in it to achieve more achievements and successes that consolidate Dubai's leading position as one of the most important financial and business markets in the world.

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