Dubai Electricity and Water Authority (DEWA) today announced that following approval from the UAE Securities and Commodities Authority (SCA), it has exercised its right to increase the number of shares offered in its initial public offering.
The shares will be increased from 3,250,000,000 ordinary shares to 8,500,000,000, which would result in a free float of 17% of DEWA’s share capital, with the Government of Dubai continuing to own 83% of DEWA's share capital.
DEWA has also received approval from the SCA to increase the size of the tranche reserved for qualified investors (which includes the new Strategic Investors) from 5.9% (representing up to 2,925,000,000 shares) to up to 16.4% of the company’s share capital (representing up to 8,175,000,000 shares).
Excluding the New Strategic Investors, who are locked up for between 180 and 365 days, the deal (including previously announced cornerstones) increases from 6.5% to 10% of the company’s share capital. The size of the retail and employee tranches will remain the same, it said.
"The new offering size was determined by the Government of Dubai as the selling shareholder, following DEWA’s decision to set the offer price range per share between AED2.25 and AED2.48 per ordinary share on March 24, providing investors with a highly attractive value proposition that reflects the Government of Dubai’s long-term confidence in DEWA’s growth trajectory. The decision also reflected DEWA’s prioritization of supporting aftermarket trading performance post-listing," the company said.
The subscription period for the DEWA IPO remains unchanged and will close on April 2, 2022 for UAE retail investors and on April 5, 2022 for qualified domestic and international institutional investors. DEWA is expected to list on the Dubai Financial Market on or around April 12. - TradeArabia News Service
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