Dubai Electricity and Water Board plans to launch IPO

DEWA will release 3.25 billion shares that will be listed on DFME which is 6.5% more than its evaluation.

DEWA, Dubai’s state-run utility Dubai Electricity and Water Authority revealed on Tuesday that it will list a part of its share on the Dubai Financial Market Exchange (DFME), to try its luck in the recent spurt of IPOs in Gulf countries.

DEWA will release 3.25 billion shares that will be listed on DFME which is 6.5% more than its evaluation.

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This move is part of a bigger picture when in November Sheikh Maktoum bin Mohammed Al Maktoum, son of the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum announced to let 10 state entities go public to massively enhance its profile and seek capital for the high life emirate.

This decision comes amidst uncertainty and market volatility with the onset of the Russian offensive against Ukraine. The history of the previous IPOs of markets hit players in Dubai have bled investors off their hard-earned money and companies continue to keep to private with these setbacks.

DEWA’s Chief Financial Officer Thomas Varghese said passionately in a report, “We have experienced very positive response across the globe, some unfortunate events in Europe are going on as we plan things here, however, we do not see it directly affecting our action plan.”

In a compilation for investors, DEWA mentioned it closed in 2021 with a sale of $1.7 billion. And in 2019 it marked its profits to $ 1.8 billion, though the coronavirus dropped its profits in 2020 to $1.4 billion. It paid handsome dividends to the Government of Dubai to the tune of $ 1.2 billion in 2019, $ 408 million in 2020 and $ 544 million in the year 2021.

DEWA has plans to pay handsome dividends bi-annually to its priced investors, with at least $1.6 billion to be given annually over the next 5-year bracket.

Dubai has a bustling population of 3.5 million people and continues to be the hot spot for young executives and entrepreneurs as the ruler of Dubai kept the tourism crown prime throughout the pandemic and real estate markets reigning under his aegis. DEWA is the most favourite government office public interacts with on a daily basis and has a monopoly in being able to meet the basic and most important demands of water and electricity.

 

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