Are you planning to invest in the DEWA IPO? The following key points are all you should know to make the investment:
DEWA IPO Key Points
- DEWA, or the Dubai Water and Electricity Authority, plans to sell a 6.5% stake by offering 3.25 billion shares in its public offering, Dh9 billion or thereabouts.
- DEWA, which is the exclusive provider of water, electricity and district cooling to Dubai’s 3.5 million local and expatriate residents, has 13.4 gigawatts of installed electricity capacity and can produce 490 million imperial gallons of desalinated water each day.
- “This is a historical moment for DEWA as the first government entity in Dubai to go public,” DEWA Chief Executive Saeed Mohammed Al Tayer said in a statement. Dubai plans to list as many as 10 state-owned entities this year, with road toll system Salik and business park operator Tecom earmarked as possible next candidates. Businesses within Emirates Group, including dnata and loyalty program Skywards, as well as Dubai airport’s Duty Free, have also been rumored among those being considered for public offer.
- The utility had adjusted earnings of $3.3 billion last year, and plans to pay a minimum dividend of $1.69 billion over the next five years to future investors, with net income of Dh6.6bn and net debt of Dh17.6bn in 2021.
- DEWA said it would use the public offering to “explore the use of new and innovative storage technologies” in renewable energy and target international expansion for its district cooling services to Saudi Arabia, Qatar and other regional markets.
- “Growth is also expected to result from the various investments made by the Group in new technologies,” the prospectus said, including its expansion in green hydrogen, energy storage, electric vehicle charging and smart water projects.
- The offering will be made available to individual and other investors as part of the UAE retail offering, as well as to professional investors outside the US, including the UAE, as part of the qualified investor offering.
- The UAE retail offering subscription period is expected to run from March 24, 2022, to April 2, 2022.
- The qualified investor offering subscription period is expected to run from March 24, 2022, to April 5, 2022. Admission of shares to trading on the DFM is expected in April 2022.
- Emirates NBD is Dewa’s financial adviser on the deal while US-based Moelis & Company is the independent financial adviser.
- Citigroup, Emirates NBD Capital and HSBC are joint global co-ordinators. Credit Suisse, EFG-Hermes, First Abu Dhabi Bank and Goldman Sachs are joint bookrunners.
- Dewa has diversified its sources of income through projects in the energy and water sectors, and its “strong financial performance” is backed by investment in assets worth about Dh200bn, Mr Al Tayer said last year.
- Dewa, which was established in 1992 after a merger between the Dubai Electricity Company and the Dubai Water.
- DEWA also has a 70% stake in Empower, the world’s largest district cooling services provider, which has a total contracted capacity of around 1.6 million refrigeration tonnes (RT)
- DEWA owns several other businesses including Mai Dubai, a manufacturer and distributor of bottled water, Digital DEWA, a digital business solutions company, and Etihad ESCO, a company focused on the development and implementation of energy efficient solutions.
Important Dates
Find out more about what DEWA has planned in the coming days:
Intention to Float Announcement 15 March 2022
Retail Subscription Commencement 24 March 2022 Price Range Announcement
Retail Subscription Closing 2 April 2022
Refunds 11 April 2022
