DEWA raises IPO offer size to 17% and investors will be cheering

DEWA raises IPO offer size to 17% and investors will be cheering

Dubai: DEWA has increased its offer size to 17 per cent from 6.5 per cent as its IPO meets with overwhelming subscriber demand. "The new offering of 8.5 billion ordinary shares implies a deal size of 17 per cent," the Dubai utility company said in a statement. * New strategic investors will receive around 7 per cent of the company’s share capital (representing approximately 3.50 billion shares) and with a lock-up of between 180 to 365 days. * Balance of the offer size (including 'cornerstone investors' who came in earlier) is up from 6.5 per cent to 10 per cent of the share capital. * The increase in offer size does not apply to retail investors. The IPO was heavily over-subscribed from Day 1, with the offer opening on March 24. Retail investors had been keenly anticipating DEWA offering a higher stake - but they will not be getting any of the new shares being offered. (The retail tranche will remain unchanged at between Dh731 million to Dh806 million of the overall Dh7 billion plus issue size.) The hike in offer size follows approval from the UAE regulator, the Securities and Commodities Authority. DEWA “exercised its right to increase the