Dewa to list 6.5% of its shares on the Dubai Financial Market

Senior officials pose for a photo at the announcement in Dubai on Tuesday.

The Dubai Electricity and Water Authority (Dewa) has announced that it will list 6.5% of its existing shares in an initial public offering (IPO) on the Dubai Financial Market (DFM), in line with new strategic guidelines aimed at developing the emirate’s financial market. market and as part of the strategy of the Dubai Market Surveillance Board.

Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Governor of Dubai, Deputy Prime Minister and Minister of Finance, said: “Today marks a significant moment in Dewa’s history and is an important step towards achieving our view of capital markets in Dubai. As a central part of Dubai‘s economy, DEWA has a vital role to play in supporting the future growth of the emirate and its transition to a net zero economy by 2050. For potential new Dewa shareholders, This offer is an opportunity to be part of Dubai’s future and have a stake in an organization that has an unrivaled track record of technological innovation and operational excellence.

Sheikh Maktoum affirmed that this step is in line with the implementation of the directives of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, as part of the strategy of the Market Surveillance Committee of Dubai aimed at increasing the size of the emirate’s stock market. to 3 trillion dirhams over the coming period, indicating that DEWA’s historic listing will mark a turning point for the emirate’s capital market and help usher in a new phase of improvement in its strong performance.

The IPO will include a total of 3.25 billion shares, or 6.5% of Dewa’s existing shares, with the selling shareholder reserving the right to increase the size of the offering at any time prior to the pricing of the offering, subject to applicable law and approval by the SCA.

Completion of the offering and admission of the shares to trading is expected to take place in April 2022, with the offering to be made available to individual investors and others under the UAE retail offering as well as to professional investors outside the United States of America. America, including the United Arab Emirates, as part of the offer to qualified investors.

Saeed Mohammed Al Tayer, Managing Director and CEO of Dewa, said: “This is a historic moment for Dewa as the first government entity in Dubai to go public. This reflects the immense faith and trust of our wise leaders and the Government of Dubai. As the exclusive provider of electricity and water services in Dubai, DEWA is extremely proud to have played a part in the success of the emirate.

“Dubai’s rapid development has led to a rapid increase in the demand for electricity and water. And DEWA has grown alongside the expansion of Dubai’s world-class economy, population and competitive infrastructure, underscoring the emirate’s position as a global city. Dewa is therefore both integral to and benefits from Dubai’s past and current economic growth. And we are playing a key role in Dubai’s green energy transition process.

Al Tayer added: “Dewa has a world-class system of governance and an ongoing record of good governance in all of its operations. With the highest standards of efficiency, quality and availability, Dewa is ready to meet the growing demand for electricity and water in the emirate, as the population is expected to grow from around 3.5 million people today to 5.8 million people by 2040.”

The company intended to pay dividends twice per fiscal year following the Offering in April and October of each year. The group planned to pay a minimum dividend amount of 6.2 billion Dhs per year, over the next five years (October 2022-April 2027). For the avoidance of doubt, the company planned to pay a first dividend payment of Dhs 3.1 billion after the global offering, for the second half of 2022, by October 2022.

Emirates NBD Capital Limited has been appointed financial adviser while Moelis & Company UK LLP DIFC Branch has been appointed independent financial adviser to DEWA.

Citigroup Global Markets Limited, Emirates NBD Capital Limited and HSBC Bank Middle East Limited have been appointed Joint Global Coordinators, and Credit Suisse International, EFG-Hermes UAE Limited, First Abu Dhabi Bank PJSC and Goldman Sachs International have been appointed Joint Bookrunners.

Emirates NBD Bank PJSC has been appointed lead receiving bank.

Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Ajman Bank, Al Maryah Community Bank LLC, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank and Sharjah Islamic Bank have been named as receiving banks.

Dewa is a world leader in fully integrated utilities, with a generating capacity of 13.4 gigawatts of electricity as well as 490 million imperial gallons of desalinated water daily. The company exclusively supplies electricity and drinking water to Dubai’s 3.5 million residents and the millions of people who visit it each year.

About Tammy N. McFarlane

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