Dubai’s state-owned water and power supply company DEWA will be listed soon on the Dubai Financial Market – in April 2022. It will be the first out of ten government-owned commercial entities that will list on the Dubai Financial Market, in the near term.
What will DEWA offer?
Dubai Electricity and Water Authority (DEWA) has planned to sell a 6.5% stake of the company by offering 3.25 billion shares in its initial public offering. The officials have announced an appealing share prospectus that could make it the largest public offering of its kind in the emirate.
Authorities will announce the share price by March 24 and shares could list on the Dubai Financial Market (DFM) by April 12.
“This is a historical moment for DEWA as the first government entity in Dubai to go public,” DEWA Chief Executive Saeed Mohammed Al Tayer said in a statement.
Bringing DEWA for IPO has been considered a much-awaited step for Dubai to add more to its capital markets, with the intention to raise the market cap of Dubai Financial Market to AED3 trillion.
When it comes to DEWA’s operational capacity and strength, it has 13.4 gigawatts of electricity capacity and it can daily generate 490 million imperial gallons of desalinated water.
The tranche offers of DEWA
With the minimum subscription size of AED5,000, the authority has designated the first proportion of 8 per cent (260 million) – reserved for individual subscribers.
The second tranche consists of 90 per cent (2.925 billion) of offered shares and is reserved for professional investors. The base subscription has been set at AED1 million. The third tranche of 2 per cent is reserved for DEWA eligible employees.
Note: DEWA reveals the payment plan and is said to pay dividends every April and October.
“Today represents a significant moment in the history of DEWA and is an important step towards achieving our vision for capital markets in Dubai,” said Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and UAE Minister of Finance, in a statement.
“For DEWA’s potential new shareholders, this offering is an opportunity to be part of the future of Dubai and have a stake in an organisation that has an unparalleled track record of technological innovation and operational excellence.”
DEWA’s previous track record
The utility company has adjusted its earnings of $3.3 billion last year and has planned to pay a minimum dividend of $1.69 billion over the next five years to future investors. DEWA also expects a promising future and positive growth in demand in Dubai for water and electricity, as significant numbers of expatriates are expected to move to Dubai from several countries.
What are the upcoming plans?
DEWA officials assured to utilize the public offering to explore the use of new and innovative storage technologies in renewable energy and expand its district cooling services to international markets such as Saudi Arabia and Qatar.
The utility company is already engaged in several mega projects including Mohammed Bin Rashid Al Maktoum Solar Park – spread over 77 square kilometres in Saih Al Dahal and it will be one of the world’s biggest renewable energy projects.
Dubai plans to list as many as 10 state-owned entities this year including Salik – the road toll system and Tecom – the business park operator. Businesses within Emirates Group including loyalty program Skywards and Dubai airport’s Duty Free entity have been rumoured to be up for the public offer in the next few months.