Dubai launches privatisation drive with power and water IPO

Dubai launches privatisation drive with power and water IPO

Dubai has kicked off plans to boost its capital markets by selling stakes in 10 state-owned businesses with the IPO of its monopoly electricity and water provider.

In its intention to float statement on Tuesday, the Dubai Electricity and Water Authority said it would offer 3.25bn shares, or 6.5 per cent of its share capital, in what could be one of the largest listings ever in the emirate. Officials and bankers have previously said the listing could value Dewa at around 100bn dirhams ($27.2bn).

“Dubai’s fast paced development has resulted in a rapid increase in the demand for electricity and water,” chief executive Saeed Al Tayer said in a statement. “And Dewa has grown along with Dubai’s expanding economy, population and world-class competitive infrastructure.” Electricity demand grew 11 per cent in 2021, ahead of the forecast 4 per cent, he said.

The Dewa IPO is part of a plan to revive Dubai’s moribund capital marketswith a series of part-privatisations, as well as the expansion of market making and support for technology firms seeking to list on the Dubai Financial Market.

The government aims to boost its domestic markets after falling behind regional competitors Abu Dhabi and Riyadh, where volume and valuations have soared in