DEWA plans to list 6.5 pct stake in what could be Dubai’s biggest IPO

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State-owned Dubai Electricity & Water Authority (DEWA) plans to sell a 6.5 percent stake in what could be the city’s biggest initial public offering.

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The offer price range will be announced on March 24 with an expected trading debut on April 13, according to an advertisement published by the utility in Gulf News. The utility is offering 3.25 billion shares in the transaction.

The UAE retail offering subscription period is March 24 to April 2, while the qualified investor offering subscription period: March 24 to April 5.

Dubai’s government retains the right to increase the size of the offering before the end of the subscription period

The company intends to pay dividends twice each fiscal year, in in April and October

Expects to pay a minimum dividend amount of 6.2 billion dirhams per annum over the five years through April 2027

Citigroup, Emirates NBD Capital, HSBC Bank Middle East, Credit Suisse, EFG-Hermes, First Abu Dhabi Bank and Goldman Sachs are among the banks managing the process.

Dubai Electricity & Water Authority is pushing ahead with the listing even though Russia’s invasion of Ukraine has effectively shut the IPO markets. Still, Gulf markets are so far proving resilient to the volatility as surging local stock markets support deal flow on the back of soaring oil prices.

New listings in Middle East financial hubs such as Abu Dhabi and Riyadh have attracted a flood of cash. Investors placed $126 billion in bids for Arabian Internet & Communications Services’ $966 million IPO in Riyadh last year, while ADNOC Drilling attracted more than $34 billion of orders for its IPO in Abu Dhabi.

The utility’s IPO is part of Dubai’s plans to list ten state-owned companies, revive trading volumes and catch up with exchanges in Abu Dhabi and Riyadh.

Dubai, which missed out on last year’s IPO boom in the Middle East and North Africa, has also been encouraging private and family-owned businesses to follow suit. Dubai’s stock market has gained about five percent this year.

DEWA caters to the city’s 3.4 million residents. The utility has 13.4 gigawatts of power capacity as well as 490 million imperial gallons of desalinated water each day.

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Saudi Tadawul Group sets price range for IPO at $25 to $27 per share

Dubai utility DEWA hires Citi, HSBC for top roles in upcoming IPO: Sources

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