7 reasons why you should invest in Dubai’s DEWA

7 reasons why you should invest in Dubai’s DEWA

Dubai: If you were still on the fence on whether or not you should invest in the initial public offering put forward by Dubai’s state water and power company DEWA, we look at seven different reasons why you should. Although the likely size of the IPO will be clear after March 24, which is when the time to subscribe for shares open, multiple Dubai-based market analysts are evaluating how the 6.5 per cent stock floatation implies an IPO size of about Dh10 billion and a total market valuation of well over Dh100 billion. This sheer magnitude of the utility giant’s offering is a key reason why investor participation could set a new record for an IPO in Dubai, analysts further opine. The deal is the first new listing in Dubai since 2020 and is expected to be the UAE's biggest IPO on the Dubai Financial Market (DFM) since 2017. A stock bought during an IPO has the potential to deliver huge capital gains decades down the line, historical data shows. Even just the annual dividend income of a highly successful company can exceed the original investment amount, given a few decades' time – which bring us to the first reason.