The DEWA IPO is part of the Dubai Markets Supervisory Committee’s strategy to increase the size of the emirate’s stock market to $816.74 billion
The Dubai Electricity and Water Authority PJSC (DEWA) has revealed its intention to float 6.5 percent of its issued share capital – totalling 3.25 billion shares – to be listed on the Dubai Financial Market (DFM).
The DEWA listing will be one of the first of the upcoming 10 big listings on the DFM, an expert told Arabian Business.
The offering will be made available to individuals and other investors as part of the UAE retail offering, as well as to professional investors outside the US, as part of the qualified investor offering.
5 steps to subscribe to the DEWA’s IPO shares
The DEWA IPO is part of the Dubai Markets Supervisory Committee’s strategy to increase the size of the Emirate’s stock market to $816.74 billion (AED 3 trillion) in the coming period.
Commenting on the DEWA IPO, the chief market strategist of Century Financial, Devesh Mamtani, told Arabian Business: “The listing is estimated to be valued between $ 27 billion to $ 37 billion. The DEWA listing will be the first of the upcoming 10 big listings on the DFM.
“The listing plan aims to help the Dubai stock market compete more effectively with bigger exchanges in the region, such as those in Saudi Arabia and neighboring Abu Dhabi.”
Since its inception, DEWA has been the monopoly supplier of electricity and water in Dubai. The firm has played a proactive role in shaping the future of Dubai with a keen focus on energy and climate change.
Mamtani added: “The listing of the leading giant will be a trailblazing event for the trading activity on DFM and is likely to receive an overwhelming response on the IPO day.
“The listing of DEWA will open doors to a flurry of IPO on the exchange, such as the road toll operator Salik, to enhance trading volumes and improve retail interaction.”
Hinting at more of IPO activity in the future, Mamtani concluded: “Dubai has strategised the revival of the local stock exchange with stellar offerings in the pipeline and is inaugurating the trail with a dominating behemoth.”