Dubai Electricity and Water Authority (DEWA) has set the price range for its Initial Public Offering at between AED2.25 and AED2.48 per share. The total offering size will be between AED7.31 billion ($1.99 billion) and AED8.06 billion ($2.19 billion), the company said.
The announcement implies the company’s market capitalisation at listing of between AED112.50 billion ($30.63 billion) and AED124.00 billion ($33.76 billion), which would make DEWA the largest company on the Dubai Financial Market (DFM) by market capitalisation.
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 prior to the end of the subscription period at its sole discretion, subject to applicable laws and approval of the Securities & Commodities Authority (SCA), said a statement.
All shares to be offered shall represent the sale of existing shares held by the Government of Dubai.
Other highlights of the issue:
• Emirates Investment Authority, ADQ, UAE Strategic Investment Fund, Multiply Group, Alpha Dhabi Partners and Investment Holdings to become cornerstone investors in the IPO with a total commitment of up to AED4.7 billion ($1.3 billion).
• The IPO subscription period starts today (March 24) and runs until April 2 for the UAE Retail Offering and April 5 for the Qualified Investor Offering.
• The final offer price will be determined through a book building process and is expected to be announced on April 6.
• Admission of the shares to trading on the DFM is expected on April 12.
Saeed Mohammed Al Tayer, Managing Director & Chief Executive Officer of DEWA, said: “DEWA has a fundamental role to play in the growth of Dubai’s economy and is central to the Emirate’s transition to net zero carbon emissions by 2050. This IPO represents an opportunity for investors to participate in a unique growth story that is underpinned by the ambition of Dubai and the United Arab Emirates.
“Since announcing our intention to float on the Dubai Financial Market last week, we have received strong interest from local and international investors that recognise our determination to shape a green future for Dubai. This interest also reflects the confidence in DEWA, which keeps pace with Dubai’s expanding economy and population by developing a world-class competitive infrastructure to consolidate Dubai’s position as a global city and provide electricity and water services according to the highest global standards of availability, reliability, quality and efficiency, while maintaining a world-class governance system and continuous record of good governance across all its operations. We are looking forward to welcoming our new shareholders when we formally list in the coming weeks.”
DEWA is the exclusive provider of electricity and potable water in Dubai and the majority owner of Empower, the world's largest district cooling services operator by connected capacity.
SUBSCRIPTION PROCESS
As previously announced, the offering is available to the following subscribers:
• Individual and other investors and to eligible DEWA employees (as defined in the UAE prospectus) as part of the UAE Retail Offering and;
• Professional investors and other investors in a number of countries outside the United States of America, including in the UAE, as part of the Qualified Investor Offering. -TradeArabia News Service
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