Dubai Electricity And Water Authority's US$6.1 Billion Initial Public Offering Becomes The Largest Ever Listing In The Middle East Since 2019
DEWA listed nine billion shares, representing 18% of its share capital, at a price of AED 2.48 per share, thereby implying a market capitalization of AED124 billion, and thus making it the largest company on the DFM as well.
On Tuesday, April 12, 2022, Dubai Electricity and Water Authority (DEWA), the government-owned exclusive electricity and water utility provider of Dubai, successfully listed on the Dubai Financial Market (DFM), with its initial public offering (IPO) valued at US$6.1 billion.
DEWA listed nine billion shares today, representing 18% of its share capital, at a price of AED 2.48 per share, thereby implying a market capitalization of AED124 billion, and thus making it the largest company on the DFM as well.
The DEWA IPO, which has been billed as the largest ever listing in the Middle East since 2019, as well as the first-of-its-kind transaction of a public company in Dubai, was advised by the investment banking division of EFG Hermes, the leading investment bank franchise in frontier emerging markets.
HE Saeed Mohammed Al Tayer, MD&CEO of DEWA, rang the market opening bell at the Dubai Financial Market, announcing the start of trading DEWA's shares. DEWA is the largest company on the DFM by market capitalisation.#DEWAIPO #DEWAGOESPUBLIC pic.twitter.com/93o2OSUDLw— DEWA | Official Page (@DEWAOfficial) April 12, 2022
In a statement, H.E. Saeed Mohammed Al Tayer, Managing Director and Chief Executive Officer of DEWA, said, "We are delighted to have seen incredibly strong demand for DEWA shares from local and international investors– and we are very proud that this will become the largest ever IPO in the UAE and the largest in the Europe, Middle East, and Africa region so far in 2022. This level of interest is not only indicative of DEWA's status as a world-class provider of utilities, but also underlines the attractiveness of Dubai as a global capital market. As we look ahead, DEWA will remain focused on creating value for all its stakeholders by meeting the increasing demand for electricity and water in Dubai and by supporting the Emirate's energy transition to net zero by 2050."
The listing of the Dubai utilities giant falls in line with Dubai's plans to take 10 state-owned companies public this year as part of its efforts to deepen and diversify the capital market by bringing the index's market capitalization to AED3 trillion ($816.86 billion), and in turn, pave the way for stronger, more transparent governance structures.
Commenting on his enterprise's involvement in DEWA's IPO, Mohamed Fahmi, EFG Hermes' Co-Head of Investment Banking, said, "We're honored to have advised on this historic listing -not just for the DFM but the Middle East as a whole- which has spurred unprecedented foreign and local investment into the market by giving them first-time access to Dubai's burgeoning energy sector. We believe that the DEWA offering will reignite activity on the DFM, and the strong investor appetite is testament to the interest of all investor types in the DFM, and the overall Dubai growth story."