Dubai Electricity and Water Authority (DEWA) has launched the first of the 10 planned IPOs of the government on 15 March. Let us tell you that Dubai’s State Water and Electricity Distribution Company (DEWA) has said through its email statement that the Dubai government will sell 3.25 billion shares or 6.5 percent stake in the company under the IPO. However, the company has not told how much money will be raised through this IPO.
Bloomberg had earlier reported in its report that the company could be valued at $25 billion for the IPO, which could be one of the largest listings of the financial hub of the Middle East. Let us tell you that the government of United Arab Emirates is coming up with this IPO despite the upheaval in the stock markets around the world due to the Russo-Ukraine war.
After the issue of Intent to Float (ITF) related to this IPO, Chief Executive of DEWA, Saeed Mohammed Al-Tayer, while addressing a press conference said that the company has no idea about the size of this IPO. There is also an option to exceed 6.5 per cent. This will depend on the market conditions and the demand for the IPO.
Earlier on March 7, Reuters had informed, citing sources, that DEWA may delay the announcement of its ITF. At the same time, Dubai’s Deputy Ruler Sheikh Maktoum Bin Mohammed had said that the government is preparing to bring IPO of 10 government-linked companies to boost stock market activities. The goal of this listing plan is to prepare the Dubai Stock Market to compete with the stock markets of Saudi Arabia and Abu Dhabi in the Middle East.
DEWA is expected to pay the lowest dividend payout of dirhams ($1.69 billion) on an annualized basis over the next 5 years. This payment will start from October 22 and will be given twice a year in October and April.
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Emirates NBD of Dubai has been appointed as the Financial Advisor for this IPO. Apart from this, US advisory Moelis & Co will be the Independent Financial Advisor for this. The company has also stated that Citigroup Global Markets, the investment banking arm of Emirates NBD and HSBC are the joint global coordinators of this IPO while Credit Suisse, EFG Hermes, First Abu Dhabi Bank and Goldman Sachs are its joint book runners.
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