Dubai’s initial public offerings, which include the Dubai Electricity and Water Authority (DEWA), “TECOM” and “SALIC”, have attracted record subscription requests from local and international investors, with a total value of 534.6 billion dirhams, equivalent to 146 billion dollars; This is according to the “Gulf” survey.
The value of the subscription applications received, which exceeded half a trillion dirhams, reflects the investment position enjoyed by Dubai, which recorded coverage that exceeded the supply by more than 50 times, and exceeded 100 times in the subscription of individuals in “Salik”.
The proceeds of the initial public offering of the three companies amounted to about 27.7 billion dirhams, obtained by the two selling shareholders, namely the Government of Dubai, represented by the Department of Finance, in “Dewa” and “SALIC”, and the seller “Dubai Holding Asset Management” of “Dubai Holding” in Subscribe to TECOM.
The three companies concluded basic investment agreements with major investment funds, totaling more than 14.5 billion dirhams, including 13.8 billion dirhams in “Dewa”, 606 million dirhams in “SALIC” and 283.75 million dirhams in “TECOM”, and among the most prominent investors is the UAE Strategic Investment Fund. It is a separate portfolio of Emirates NBD managed by Emirates NBD Asset Management.
These IPOs are part of Dubai’s plan to list 10 government and semi-government companies on the Dubai Financial Market, which was announced by His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, in early November 2021, to support the sector The financial system in the emirate, and stimulating the pace of growth to achieve more achievements and successes that consolidate Dubai’s position as one of the most important financial and business markets in the world.
Dubai aims to double the value of its financial markets and stock exchanges to 3 trillion dirhams.
future proposals
It is expected that “Dubai IPOs” will attract more IPOs in the coming months, as it is expected that more semi-government companies will be listed, led by Empower.
And the markets recorded a demand from private and family companies to offer shares for public subscription and to be listed in the markets in the future as well. Among the companies that announced their intention to list, Al Habtoor Group within two years, and the “Imdaad” group, while Taaleem Holding revealed that it intends to offer its shares for public subscription, as The shareholders approved the transformation of the company into a public joint stock company in preparation for offering the company’s shares for public subscription and listing on the Dubai Financial Market.
For its part, Al Ansari Exchange has chosen EFG Hermes and Emirates NBD to lead the company’s expected listing on the Dubai Financial Market, in the first quarter of 2023.
Also, businessman Faisal Belhoul revealed his intention to offer shares of Digital Investment Company to invest in technology companies for an initial public offering in Dubai, by the end of this year. Digital Investment aims to raise 1 billion dirhams ($272 million) from the listing.
“Dewa” .. 315 billion
Dubai, the series of initial public offerings, has successfully launched the initial public offering of the Dubai Electricity and Water Authority; Dewa’s subscription requests reached world records, amounting to 315 billion dirhams, with the entry of sovereign funds and global investment portfolios, and the company’s value approached 124 billion dirhams.
The number of shares available in the public offering reached 9 billion shares, worth 22.3 billion dirhams, representing 18% of the company’s capital; The Dubai government retains 82% of the company’s ownership, generating total revenues of 22.3 billion dirhams ($6.1 billion) for the benefit of the selling shareholder.
The offering witnessed a strong turnout, and the subscription requests exceeded the shares offered, by qualified investors and individual subscribers. The value of the total demand for the shares of the Authority amounted to 315 billion dirhams (85.7 billion dollars). With the exception of the main and strategic investors, the authority witnessed a strong demand in the subscription order book, which exceeded the supply of shares by 37 times.
“Salik” .. 184.2 billion
The subscription of Salik, the exclusive operator of traffic toll gates in Dubai, witnessed a huge turnout. As the total demand for the public offering amounted to more than 184.2 billion dirhams ($ 50.2 billion), which means that the subscription was exceeded by about 49 times for all segments combined.
The qualified investors segment attracted huge demand from all over the world, amounting to 149.5 billion dirhams, which indicates an increase in demand for subscription by 43 times (excluding the core investors, where the subscription requests exceeded 52 times).
The offering of individual investors witnessed a huge demand from local investors; Where the demand for subscription exceeded 34.7 billion dirhams, which indicates an increase of more than 119 times.
The huge demand from investors for Salik shares confirms the convincing investment offer of the company as the exclusive operator of traffic tariffs in Dubai.
The offering resulted in total proceeds of more than 3.7 billion dirhams (one billion dollars) due to be paid to the Dubai government.
“Tecom” .. 35.4 billion
The second public offering announced by Dubai, of the TECOM Group, has been launched, attracting strong demand from the underwriting of qualified institutional investors and the subscription of individuals in the UAE; The value of the subscription requests received amounted to 35.4 billion dirhams, which resulted in a total coverage of the amount of shares offered by more than 21 times according to the final price.
The subscription of individuals in the UAE recorded coverage of nearly 40 times, which is the highest coverage ratio in the history of public offerings on the Dubai Financial Market; The share of the first tranche is 2.5% for each subscriber.
“Tecom” succeeded in raising about 1.7 billion dirhams through its initial public offering, and the final price of the global offering shares was set at 2.67 dirhams per share. The offering included making 625 million ordinary shares available for subscription, representing 12.5% of the total issued shares in the group’s capital. The market value of the company upon listing is 13.4 billion dirhams.