Dubai’s DEWA raises $6.1bn in EMEA’s biggest IPO since 2019

Dubai’s main power and water company raised $6.1bn in the biggest initial public offering in Europe and the Middle East in more than two years.

Government-owned Dubai Electricity & Water Authority sold nine billion shares at Dhs2.48 each, the top end of the range. That gives it a market value of $33.8bn and making it one of the world’s biggest utilities. The stock is expected to start trading in Dubai around April 12.

DEWA almost tripled the size of the stake it sold to 18 per cent. It’s the latest sign of feverish appetite for share offerings in the Gulf even as listings dry up in the rest of the world.

DEWA boosted the number of shares on offer amid high demand from both institutional and retail investors. Orders totaled almost $86bn, according to the Dubai government.

Russia’s invasion of Ukraine, rising inflation and hawkish central bank policies have roiled equity markets worldwide, causing several listings to be scuppered. But high oil prices have benefited the energy-rich Gulf, leading to strong investor inflows and a flurry of share sales.

DEWA’s IPO is the biggest in Europe, the Middle East or Africa since Saudi Arabian oil giant Aramco raised almost $30bn in late 2019.

Having seen just one $95m listing since 2017, Dubai is now hosting the world’s second-biggest IPO this year. The DEWA deal is the first step in the emirate’s plan to reinvigorate its capital markets and boost trading volumes. Dubai plans to list 10 state-owned companies, of which DEWA is the first.

Citigroup, Emirates NBD Bank and HSBC Holdings are managing DEWA’s share sale. Credit Suisse Group AG, EFG-Hermes, First Abu Dhabi Bank and Goldman Sachs Group are also involved as bookrunners.