Dubai: Dewa increases IPO size to 17%

Dubai Electricity and Water Authority on Wednesday (Dewa) announced that it had increased the number of shares offered in its initial public offering from 3,250,000,000 ordinary shares to 8,500,000,000 ordinary shares.

This would result in a free float of 17% of DEWA's share capital, with the Government of Dubai continuing to own 83% of DEWA's share capital, and follows approval from the UAE Securities and Commodities Authority (SCA).

Dewa has also received approval from the SCA to increase the size of the tranche reserved for qualified investors (which includes the new Strategic Investors) from 5.9% (representing up to 2,925,000,000 shares) to up to 16.4% of the company's share capital (representing up to 8,175,000,000 shares).

Excluding the New Strategic Investors, who are locked up for between 180 and 365 days, the deal (including previously announced cornerstones) increases from 6.5% to 10% of the company's share capital. The size of the retail and employee tranches will remain the same.

The new offering size was determined by the Government of Dubai as the selling shareholder, following Dewa's decision to set the offer price range per share between Dh2.25 and Dh2.48 per ordinary share on March 24.

The decision provided investors with a highly attractive value proposition that reflects the Government of Dubai's long-term confidence in Dewa's growth trajectory. It also reflected Dewa's prioritisation of supporting aftermarket trading performance post-listing.

The subscription period for the Dewa IPO remains unchanged and will close on April 2 for UAE retail investors and on April 5 for qualified domestic and international institutional investors.

Dewa is expected to list on the Dubai Financial Market on or around April 12.

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