Abu Dhabi's IHC to invest $200m in Dewa IPO
Two subsidiaries of Abu Dhabi International Holding Company (IHC) are to each invest AED367m ($99.9m) in the initial public offering (IPO) of Dubai state utility Dubai Electricity & Water Authority (Dewa)
Two subsidiaries of Abu Dhabi International Holding Company (IHC) are to each invest AED367m ($99.9m) in the initial public offering (IPO) of Dubai state utility Dubai Electricity & Water Authority (Dewa).
IHC subsidiary Abu Dhabi Holding will invest AED367m through its subsidiary, Alpha Dhabi Partners Holding, in the Dubai Electricity & Water Authority (Dewa) initial public offering (IPO).
"Dewa’s landmark IPO is representative of the strides the UAE continues to make to diversify its economy and provides a strong platform for DEWA to build on its growth potential, supported by robust market fundamentals. DEWA’s strong ESG credentials and the high-interest nature of the IPO puts the UAE firmly on the global investment map and we are proud to be a cornerstone investor as part of their IPO," said Hamad Al-Ameri, CEO of Alpha Dhabi Holding, following the announcement of the IPO investment.
Multiply Group, acquired by IHC in 2020, also announced that it will be investing AED367m into the Dewa IPO as a cornerstone investor.
DEWA announced the price range and beginning of subscription period for its IPO on 24 March. The price range for the IPO was set at between AED2.25 and AED2.48 per share.
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 at any time prior to the end of the subscription period at its sole discretion, subject to applicable laws and approval of the Securities & Commodities Authority (SCA). All shares to be offered shall represent the sale of existing shares held by the Government of Dubai.
The total Offering size is expected to be between AED7.31 billion ($1.99 billion) and AED8.06 billion ($2.19 billion), implying a market capitalisation at listing of between AED 112.50 billion (US$ 30.63 billion) and AED 124.00 billion ($33.76 billion), which would make Dewa the largest company on the DFM by market capitalisation.
The closing date of first tranche, retail investors, and third tranche, Dewa eligible employees, will be 2 April with the 5 April to be closing date for professional investors (second tranche).
On 6 April, Dewa will inform second tranche of final allocations, with the final allocation first tranche and third trance set for 11 April 2022. The shares are planned to be listed on the DFM the following day, 12 April.
Dewa has a power generation capacity of 13.4GW and a water desalination capacity of 490 million imperial gallons a day (MIGD). Dewa is also responsible for the transmission and distribution of electricity in the emirate, and is the owner and operator of all substations, overhead lines and underground cables that form the grid.
About 11.4 per cent of Dewa’s current power generation comes from clean resources, with the utility targeting for this to reach 25 per cent by 2030 and 100 per cent by 2050.
Dewa also has a 70 per cent stake in Empower, the world’s largest district cooling provider.
Energy & Utilities reported in November that Dewa had appointed US investment bank Moelis and local bank Emirates NBD to advise on the IPO.
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