UAE’s DEWA IPO subscription period opens today

Dubai Electricity and Water Authority (DEWA) has announced the start of the subscription period for its initial public offering and announced the price range of the shares.  

The price range is set between Dhs2.25 and Dhs2.48 per share, implying a market capitalisation of between Dhs112.5bn ($30.63bn) and Dhs124bn ($33.76bn), 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 per cent of DEWA’s existing shares, will be offered, with the selling shareholder reserving the right to increase the size of the offering. Emirates Investment Authority, ADQ, UAE Strategic Investment Fund, Multiply Group, Alpha Dhabi Partners and Investment Holdings will become cornerstone investors in the IPO with a total commitment of up to approximately Dhs4.7bn (approximately $1.3bn), as a result of the cornerstone investment agreements signed with DEWA on March 23.

All shares to be offered shall represent the sale of existing shares held by the Government of Dubai.

The IPO subscription period starts today 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 and CEO 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. Since announcing our intention to float on the DFM last week, we have received strong interest from local and international investors that recognise our determination to shape a green future for Dubai. We are looking forward to welcoming our new shareholders when we formally list in the coming weeks.”

The offering is available to the following subscribers:

– To individual and other investors and to eligible DEWA employees as part of the UAE retail offering.

– To professional investors and other investors in a number of countries outside the US, including in the UAE, as part of the qualified investor offering.

Citigroup Global Markets Limited, Emirates NBD Capital 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 has been appointed as the lead receiving bank. Abu Dhabi Commercial Bank Abu Dhabi Islamic Bank, Ajman Bank, Al Maryah Community Bank, 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 and HSBC Bank Middle East have stated the offering is compliant with Shariah principles.