Dubai to list Dewa on stock market soon

The listing of the Dubai Electricity and Water Authority will be done in stages in order to take into consideration its huge assets.



The Dewa power station in Dubai. — AFP file photo
The Dewa power station in Dubai. — AFP file photo
by

Muzaffar Rizvi

Published: Tue 2 Nov 2021, 4:34 PM

Last updated: Tue 2 Nov 2021, 7:50 PM

The Dubai government on Tuesday announced plans to list Dubai Electricity and Water Authority (Dewa) as part of a plan to boost the emirate’s stock market to Dh3 trillion.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, and Deputy Prime Minister and Minister of Finance of the UAE, said on Twitter that the listing of its main water and power utility will be done in the coming months

“The listing of the Dubai Electricity and Water Authority (Dewa) will be done in stages in order to take into consideration its huge assets, Sheikh Maktoum tweeted.

Latest announcement comes a day after the government announced plan to list 10 state-backed companies on Dubai Financial Market to increase liquidity in the market. It boosted the benchmark Dubai index, which ended nearly four per cent higher at 2,995.32 points.

The Dewa listing is part of the Securities and Exchange Higher Commission’s strategy to increase the size of the stock market in the Emirate to Dh3 trillion, raise the competitiveness of bourses and encourage initial public offerings (IPOs), according to Dubai Media Office.

Sheikh Maktoum highlighted the pivotal role that Dewa has played over the past decades and praised its contribution to Dubai’s development.

“Dewa is a key pillar of the development in Dubai. Investing in Dewa is an investment in Dubai’s future,” he said, adding that the listing will be carried out gradually due to Dewa’s huge asset portfolio.

Leading brands on listing radars

The Dewa listing, which will allow investors to access shares in profitable companies, represents a major step that will support the financial markets in the Emirate.

Inside market sources said Dubai government will also disclose the names of the remaining nine state-backed companies in due course of time.

“The government has developed some reputable brands over a period of time. Emirates airline, flydubai, dnata, Roads and Transport Authority (RTA), ENOC, and Jumeirah will be potential candidates for listing on Dubai Financial Markets and can attract investors,” sources said.

Sheikh Maktoum on Monday announced the listing of 10 government and state-owned companies on the Dubai Financial Market (DFM) as part of accelerating new listings in various sectors including energy, logistics and retail.

Sheikh Maktoum, who oversees stock market and bourses in the emirate, also approved plans to launch a Dh2 billion ($544.6 million) market-maker fund to boost trading on the stock market. He also gave go ahead to launch of a Dh1 billion fund to encourage technology companies to list on the local bourse. Mohammed Ali Yasin, chief strategy officer at Al Dhabi Capital, said the announcement of Dewa is a very strong signal to the market and investors that what they announced yesterday was not a proposed plan, but a done (deal), and execution has started.

“I am sure we’re going to be hearing about more listings,” Yasin said, citing Dubai-based energy company ENOC and airport services provider dnata as probable candidates,” Yasin said.

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Dewa first to go

Dewa had 884,404 water customers and 990,258 electricity customers as of the end of 2020, according to company data. The utility, has a total energy generation capacity of 12.3 gigawatts and has the capacity to desalinate 470 million gallons of water per day.

Dewa, which posted 24.5 per cent higher profit last year to Dh4.374 billion, managed to reduce its current liabilities by almost Dh4 billion down to Dh9.4 billion. It earned 37 per cent growth in revenues to Dh14.7 billion last year.


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