Dubai Electricity and Water Authority (DEWA) on Tuesday announced its intention to proceed with an initial public offering (IPO) and to list 6.5 per cent of its ordinary shares for trading on the Dubai Financial Market (DFM).
This is in line with new strategic directions to develop the emirate's financial market and as part of the Dubai Markets Supervisory Committee's strategy.
What’s the big idea?
DEWA is the first Dubai government entity to issue an IPO on the DFM. It is learnt that the listing will be carried out gradually due to its massive asset portfolio. Though DEWA is offering 3.25 billion shares, it’s unclear how much money it aims to raise.
How can shareholders reshape Dubai’s future?
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, said:
“As a central component of the Dubai economy, DEWA has a critical role to play in supporting the future growth of the emirate and its transition to a net zero economy by 2050. For DEWA’s potential new shareholders, this offering is an opportunity to be part of the future of Dubai and have a stake in an organisation that has an unparalleled track record of technological innovation and operational excellence.”
How to buy DEWA shares?
Retail investors need to have a UAE-based bank account and a DFM Investor Number, which is known as NIN, to buy DEWA shares.
NIN allows a retail investor to trade DFM and Nasdaq-listed stocks. A retail investor needs to fill you a form, affix his/her signature and submit other relevant documents to Dubai Central Securities Depository LLC (Dubai CSD), which comes under the aegis of the Securities and Commodity Authority (SCA).
Who else can invest?
Institutional investors, including entities such as banks, funds, insurers etc.; and employees of DEWA can buy shares.
Minimum guaranteed allocation
The authorities have decided a minimum guaranteed allocation of 1,000 shares for each share subscriber.
What’s the minimum investment?
Retail investors and employees of DEWA must make an initial minimum investment of Dh5,000 and subsequent investments of at least Dh1,000. An institutional investor’s base subscription is Dh1 million and there’s no maximum limit.
What's the subscription period?
Investors can buy shares between March 24 and April. Prior to March 24, investors can book shares by sending subscription forms through their respective banks. However, institutional investors can buy till April 15.
When does the trading of DEWA shares start?
Trading of DEWA shares will start on the DFM on April 12. Institutional investors’ shares will be allocated on April 16, while retail investors and employees of DEWA will get on April 11.
What will be the price range of DEWA shares?
The price range will be known on March 24.
Why is the Dubai government betting big on IPOs?
Sheikh Maktoum asserted that this step comes in 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 Dubai Markets Supervisory Committee's strategy to increase the size of the emirate's stock market to Dh3 trillion. He indicated that DEWA's landmark listing will mark a turning point for the emirate’s capital market and contribute to ushering in a new phase of enhancements of its strong performance.
Saeed Mohammed Al Tayer, Managing Director (MD) and Chief Executive Officer (CEO) of DEWA, said:
“This is a historical moment for DEWA as the first government entity in Dubai to go public. It reflects the immense faith and confidence by our wise leadership and the government of Dubai."
News Source: Khaleej Times