The Dubai Electricity and Water Authority (DEWA) has begun trading on the Dubai Financial Market (DFM) under the ticker DEWA UH EQUITY, with shares soaring as much as 23 percent before paring gains to 17 percent.

The stock is trading at AED 2.89 after an offer price of AED 2.48, which was the top end of the marketed range, Bloomberg reported.

Dubai’s utilities giant and the exclusive water and electricity provider in the emirate, DEWA, listed 9 billion shares – representing 18 percent of its share capital – at a price of AED 2.48 per share, implying a market capitalization of $33.76 billion (AED 124 billion) and making it the largest company on the DFM.

With the start of trading on the DFM, the investment banking division of EFG Hermes has marked the successful completion of advisory on DEWA’s $6.1 billion initial public offerings (IPO) on the Dubai Financial Market (DFM) – making it the largest ever listing in the Middle East since 2019 and the first-of-its-kind transaction of a public company in Dubai.

“We’re honored to have advised on this historic listing – not just for the DFM but the Middle East as a whole – which has spurred unprecedented foreign and local investment into the market by giving them first-time access to Dubai’s burgeoning energy sector,” said Mohamed Fahmi (below), EFG Hermes’ co-head of Investment Banking.

“We believe that the DEWA offering will reignite activity on the DFM and the strong investor appetite is testament to the interest of all investor types in the DFM and the overall Dubai growth story.”

Fahmi added: “With a healthy pipeline of IPOs lined up, the UAE boasts numerous and diverse investment opportunities for clients, and we’re expecting it to become a regional hub for investors in the near future.

“The transaction follows an extremely successful year of executions for us in the GCC where we advised on landmark listings such as ACWA Power’s offering on Tadawul, ADNOC Drilling’s milestone IPO on the ADX, and Fertiglobe’s listing on the ADX.”

DEWA is a fully integrated utilities company and the exclusive provider of electricity and potable water to Dubai’s 3.5 million residents and millions of annual visitors.

It is also the lynchpin of the emirate’s net-zero energy transition by 2050 in line with the Dubai Net Zero Carbon Emissions Strategy 2050 and Dubai Clean Energy Strategy 2050.

DEWA has added 16 substations at its Mohammed bin Rashid al Maktoum Solar Park and another district in 2021 on the heels of expectations that the emirate’s population will grow to 5.8 million in 2040.

With the year just ended seeing energy demand increase by almost 10 percent in the emirate, boosted the utility’s investments in existing and completed electricity projects to $2.59 billion (AED 9.5 billion).

DEWA also owns 70 percent of Empower, currently the world’s largest district cooling services provider by connected capacity. The firm also owns, manages, operates, and maintains district cooling plants and affiliated distribution networks across Dubai.

The listing of the Dubai utility giant falls in line with Dubai’s plans to take 10 state-owned companies public this year as part of its efforts to deepen and diversify the capital market by bringing the index’s market capitalization to $816.86 billion (AED 3 trillion) and in turn pave the way for stronger, more transparent governance structures.

The Abu Dhabi Securities Exchange saw nine listings in 2021, expects 13 this year and was ranked the best performing exchange globally in 2021.

2021 was an exceptional year for GCC capital markets, with EFG Hermes’s investment banking team at the helm of all significant transactions in the region.

The division served as an advisor and joint bookrunner on the $789.55 million (AED 2.9 billion) listing of Fertiglobe; joint book-runner on the $1.089 billion (AED 4 billion) listing of ADNOC Drilling on the ADX; joint book-runner on the $735.1 million (AED 2.7 billion) listing of Yahsat on the ADX; and joint bookrunner and underwriter on Alkhorayef Water & Power Technologies’ $144 million IPO on Tadawul.

The division closed 41 ECM, DCM, and M&A transactions, with an aggregate value of over $7.9 billion, throughout its footprint in 2021.

Source: DEWA shares soar in DFM trading debut as EFG Hermes completes advisory role on $6.1 billion IPO – Arabian Business