All UAE investor eyes on whether DEWA will raise IPO offer stake from 6.5%

All UAE investor eyes on whether DEWA will raise IPO offer stake from 6.5%

Dubai: The DEWA IPO has gone well past the over-subscribed levels with another six days left before the offer period closes for retail investors. So, the Dh7 billion plus question – Will DEWA raise the offer stake beyond 6.5 per cent? If the Dubai utility giant does plan to raise, when will it do so? Bankers and investors think this is likely only on or around the closing of the offer period, which is April 2 for retail investors. (Institutional investors get until April 5.) But there are some who reckon that a DEWA announcement to hike the offer stake is imminent. Traditionally, IPO promoters tend to wait until the final moments to announce whether they will go in for a ‘green-shoe’ option, which is to retain some of the funds that fall into the over-subscribed category. In its announcement about the share offer pricing, DEWA has clearly stated that its founding shareholder vests the right to pursue such an option. “Given the level of investor interest, chances are that the final DEWA price will be closer to the higher end of the offer price range of Dh2.25-Dh2.48,” said an analyst. “The Dubai government has for specific reasons kept the