Dewa increases IPO size to 17 per cent
Dubai Electricity & Water Authority (Dewa) has increased the size of its initial public offering (IPO) to 17 per cent from the originally planned 6.5 per cent in response to major interest
Dubai Electricity & Water Authority (Dewa) has increased the size of its initial public offering (IPO) to 17 per cent from the originally planned 6.5 per cent in response to major interest.
"The new offering of 8.5 billion ordinary shares implies a deal size of 17 per cent," Dewa said in a statement issued on 30 March. “Dewa exercised its right to increase the number of shares offered from 3.25 billion shares to 8.5 billion”.
The IPO was heavily oversubscribed from the first day, with the extra shares to be distributed to new strategic investors, which will receive about 7 per cent of the company’s share capital, with the balance of offer size (including cornerstone investors) increasing from 6.5 per cent to 10 per cent of share capital.
The increase in IPO size will not offer more shares for retail investors, with the retail tranche remaining unchanged between AED731m and AED806m.
The increase in IPO size has been approved by the UAE regulator, Securities and Commodities Authority.
The Dubai government will retain ownership of the remaining 83 per cent.
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).
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.
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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