Following approval from UAE Securities and Commodities Authority (SCA), Dubai Electricity and Water Authority (DEWA) announced it had exercised its right to increase the number of shares offered in the First Tranche (Retail Tranche) of its Initial Public Offering (IPO).
Taking into account the significant demand and oversubscription from retail investors, the Government of Dubai – as the selling shareholder – decided to increase the number of shares in the Retail Tranche from 260 million to 760 million.
Accordingly, the number of ordinary shares offered in the DEWA IPO has increased from 8.5 billion to 9 billion, resulting in a free float of 18 percent of DEWA’s share capital, with the Government of Dubai continuing to own 82 percent of DEWA.
According to the previously announced price range of AED2.25 to AED2.48 per share, the Retail Tranche is now between AED1.71 billion and AED1.88 billion (US$ 465.62 – US$ 513.22 million). Retail investors, including investors in the Third Tranche (DEWA Eligible Employees), will constitute 9.2 percent of the total upsized deal.
For qualified domestic and international institutional investors, the subscription period for the DEWA IPO remains unchanged and will close on 2nd April 2022, for UAE retail investors. A listing on the Dubai Financial Market (DFM) is expected for DEWA on or around April 12, 2022.