Dubai state utility DEWA looks to raise up to $2.2bn in IPO

Dubai state utility DEWA looks to raise up to $2.2bn in IPO

Reuters/Dubai

Dubai Electricity and Water Authority (DEWA) is looking to raise as much as 8.06bn dirhams ($2.19bn) in its initial public offering, marking the largest such deal in the emirate since DP World in 2007.

The state utility firm’s public share sale kicks off the first of 10 planned listings of state-linked companies aimed at reviving Dubai’s local bourse.

DEWA set an indicative range for its shares on Thursday, with the company selling 3.25bn shares, or 6.5% of existing shares, at between 2.25 dirhams and 2.48 dirhams each, according to a statement.

An implied market capitalisation of as much as $33.76bn would make DEWA the largest company on the Dubai Financial Market by market value, it said.

Emirates Investment Authority, state holding company ADQ, Multiply Group, Alpha Dhabi Partners and Investment Holdings Est will become cornerstone investors in the IPO with a total commitment of up to $1.3bn, it said.

The IPO subscription for institutional and retail investors kicked off on Thursday, and the company expects shares to list and trade on the Dubai Financial Market on April 12.

“The appetite is going to be high...it is gonna be a success,” said Mohamed Ali Yasin, chief strategy officer at Al Dhabi Capital. “If they