Dewa to increase number of shares offered in IPO to 17%

Dubai Electricity and Water Authority (Dewa) on Wednesday announces 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 from 3.25 billion ordinary shares to 8.5 billion ordinary shares, which would result in a free float of 17 per cent of Dewa’s share capital, with the Government of Dubai continuing to own 83 per cent 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 per cent (representing up to 2,925,000,000 shares) to up to 16.4 per cent 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 per cent to 10 per cent of the Company’s share capital. The size of the retail and employee tranches will remain the same.

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 Dhs2.25 and Dhs2.48 per ordinary share on 24th March, 2022, 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 prioritisation of supporting aftermarket trading performance post-listing.

The subscription period for the Dewa IPO remains unchanged and will close on 2nd April, 2022 for UAE retail investors and on 5 April 2022 for qualified domestic and international institutional investors.

Dewa is expected to list on the Dubai Financial Market (DFM) on or around 12th April, 2022.

Dewa announced recently the price range and start of the subscription period for its initial public offering (IPO or the Offering) on the Dubai Financial Market (DFM).

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.”

WAM