An image taken on March 25, 2020 reveals a skyline of skyscrapers in the Emirati metropolis of Dubai.
GIUSEPPE CACACE | AFP | Getty Images
DUBAI, United Arab Emirates — Dubai’s state water and energy firm DEWA will checklist on the Dubai Financial Market as quickly as April, after asserting an formidable share prospectus that might make it the biggest public providing of its variety in the emirate.
DEWA, or the Dubai Water and Electricity Authority, plans to promote a 6.5% stake by providing 3.25 billion shares in its public providing. A worth vary is predicted to be introduced by March 24, and shares may checklist on the Dubai Financial Market (DFM) by April 12, in accordance to its prospectus launched Tuesday.
“This is a historic second for DEWA as the primary authorities entity in Dubai to go public,” DEWA Chief Executive Saeed Mohammed Al Tayer mentioned in an announcement.
DEWA, which is the unique supplier of water, electrical energy and district cooling to Dubai’s 3.5 million native and expatriate residents, has 13.4 gigawatts of put in electrical energy capability and might produce 490 million imperial gallons of desalinated water every day. The utility had adjusted earnings of $3.3 billion final 12 months, and plans to pay a minimal dividend of $1.69 billion over the subsequent 5 years to future traders.
DEWA additionally expects continued progress in demand in Dubai for its water and electrical energy, “as the inhabitants is predicted to develop from round 3.5 million individuals in the present day to 5.8 million individuals by 2040,” Al Tayer added.
DEWA won’t obtain any proceeds from the providing as the Dubai authorities will stay the foremost shareholder and majority proprietor of the corporate. DEWA mentioned it will use the public providing to “discover the usage of new and modern storage applied sciences” in renewable vitality and goal worldwide enlargement for its district cooling companies to Saudi Arabia, Qatar and different regional markets.
“Growth can be anticipated to outcome from the varied investments made by the Group in new applied sciences,” the prospectus mentioned, together with its enlargement in inexperienced hydrogen, vitality storage, electrical car charging and sensible water initiatives.
The resolution to go public comes as Dubai seeks to revive curiosity in its capital markets, which have failed to thrive in latest years. Rival bourses in Abu Dhabi and neighboring Riyadh have seen large listings, rising buying and selling volumes, rising overseas possession and growing retail investor participation by means of the Covid-19 restoration.
Dubai plans to checklist as many as 10 state-owned entities this 12 months, with street toll system Salik and enterprise park operator Tecom earmarked as doable subsequent candidates. Businesses inside Emirates Group, together with dnata and loyalty program Skywards, as properly as Dubai airport’s Duty Free, have additionally been rumored amongst these being thought-about for public provide.