Dubai’s DEWA Set to Price $5.7 Billion IPO at Top End of Range
Dubai’s DEWA Set to Price $5.7 Billion IPO at Top End of Range
(Bloomberg) -- Dubai’s main power and water utility set price guidance for its initial public offering at the top end of its range to raise $5.7 billion, making it the largest listing in Europe and the Middle East since Saudi Aramco in 2019.
Government-owned Dubai Electricity & Water Authority told fund managers that orders below the top end of its price range risk missing out on the IPO. It is taking orders between 2.25 dirhams and 2.48 dirhams a share until April 5.
It’s another sign that the IPO is being met by strong investor appetite as high energy prices benefit the oil-rich Persian Gulf. Earlier this week, DWEA announced it would almost triple the size of the IPO and sell 8.5 billion shares, up from the 3.25 billion initially planned.
DEWA’s IPO is part of a wider program to liberalize and diversify Dubai’s economy. The emirate plans to list 10 state-owned companies in an effort to breathe new life into its shrinking market.
“Dubai is sharing its jewels with the public for the first time,” said Wassim Jomaa, chief investment officer at Capital Investments in Jordan. “DEWA offers predictability of cash flow and a decent dividend yield, which are positive in a rising interest-rate environment.”
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