Dubai Electricity and Water Authority (Dewa), a globally leading fully integrated utilities company, said it plans to proceed with an initial public offering (IPO) and to list its ordinary shares for trading on the Dubai Financial Market (DFM).
A total of 3.25 billion shares, equivalent to 6.5% of Dewa’s existing shares, will be offered, with the selling shareholder reserving the right to increase the size of the Offering at any time before pricing of the Offering, subject to applicable laws and approval of SCA.
All shares to be offered represent sale of existing shares held by the Government of Dubai. Admission of shares to trading on the DFM is expected in April 2022.
The offering will be made available to individual and other investors as part of the UAE retail offering as well as to professional investors outside the US, including the UAE, as part of the qualified investor offering.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance, said: “Today represents a significant moment in the history of Dewa and is an important step towards achieving our vision for capital markets in Dubai. As a central component of the Dubai economy, Dewa has a critical role to play in supporting the future growth of the Emirate and its transition to a net zero economy by 2050.
“For Dewa’s potential new shareholders, this offering is an opportunity to be part of the future of Dubai and have a stake in an organisation that has an unparalleled track record of technological innovation and operational excellence.”
Saeed Mohammed Al Tayer, Managing Director & Chief Executive Officer of Dewa, said: “Dewa has a world-class governance system and continuous record of good governance across all its operations. With the highest standards of efficiency, quality, and availability, Dewa is ready to meet the increasing demand for electricity and water in the Emirate, as the population is expected to grow from around 3.5 million people today to 5.8 million people by 2040.
“Central to Dewa’s strategy is supporting Dubai’s energy transition to net zero by 2050 – we are focused on enabling a clean future for our customers and communities. Dewa supports the Dubai Net Zero Carbon Emissions Strategy 2050 and is well-aligned to the Dubai Clean Energy Strategy 2050, which aims to provide 100% of Dubai’s energy production capacity from clean energy sources by 2050. Looking ahead, Dewa will support the UAE’s strategic growth ambitions by providing Dubai’s millions of residents and visitors with world-class services and innovative energy solutions. And that in turn will enrich lives while ensuring the happiness and wellbeing of all our stakeholders."
The UAE retail offering subscription period is expected to run from March 24, 2022 to April 2, 2022, with the qualified investor offering subscription period expected to run from March 24, 2022 to April 5, 2022.
The completion of the offering and admission is currently expected to take place in April 2022, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of admission to listing and trading on the DFM.
The shares held by the selling shareholder following completion of the offering shall be subject to a lock-up which starts on the date of listing of the shares and ends six months thereafter, subject to certain terms and conditions.
Emirates NBD Capital Limited has been appointed as the Financial Advisor while Moelis & Company UK LLP DIFC Branch has been appointed as the Independent Financial Advisor to Dewa.
Citigroup Global Markets, Emirates NBD Capital Limited and HSBC Bank Middle East have been appointed as Joint Global Coordinators, and Credit Suisse International, EFG-Hermes UAE, First Abu Dhabi Bank and Goldman Sachs International have been appointed as Joint Bookrunners.
Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Ajman Bank, Al Maryah Community Bank L.L.C, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank and Sharjah Islamic Bank have been appointed as Receiving Banks.
The Internal Sharia Supervision Committees of Emirates NBD Bank PJSC and HSBC Bank Middle East Limited have issued pronouncements confirming that the offering is compliant with Shariah principles. – TradeArabia News Service
Dewa announces IPO, plan to list on DFM
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