Dubai’s DEWA More Than Doubles IPO Size to $5.7bln on Strong Investor Demand
Set to raise over $5.7 billion, making it Dubai’s largest-ever listing
Dubai Electricity and Water Authority (DEWA) said on Wednesday it has increased the size of its IPO to 8.5 billion shares from the previously announced 3.25 billion shares.
This results in a free float of 17 percent of DEWA's share capital with the Dubai Government owning the remaining 83 percent, it said in a statement.
At the top end of the price range, the state utility provider would now potentially raise over 21 billion dirhams ($5.7 billion), making it Dubai’s largest-ever listing.
The retail tranche will remain unchanged at between 731 million dirhams to 806 million dirhams.
New strategic investors will receive approximately 7 percent of the company’s share capital. A lock-in period of between 180 to 365 days will apply to these investors.
The balance of the deal size (including the cornerstone investors previously announced) is up from 6.5 percent to 10 percent of the share capital.
Last week, DEWA set a pricing range of 2.25 dirhams to 2.48 dirhams per share.
DEWA has also received approval from the UAE Securities and Commodities Authority (SCA) to increase the size of the tranche reserved for qualified investors (which includes the new Strategic Investors) from 5.9 percent to up to 16.4 percent of the share capital.
Following the IPO, DEWA could potentially be valued at $34 billion, making it the largest listed firm in Dubai Financial Market.
Meanwhile, Moody’s Investors Service on Wednesday affirmed the Baa2 long-term issuer ratings for DEWA.
The decision reflects Moody’s view that DEWA’s business and financial profile remain consistent with a Baa2 rating level despite the weakening of the company’s financial profile following the introduction of increased leverage and a higher dividend payment policy, the rating agency said.
The subscription period for the IPO remains unchanged and will close on April 2, 2022, for UAE retail investors and on April 5, for qualified domestic and international institutional investors. The shares are expected to list on the DFM on or around April 12, 2022, according to DEWA.