The Director of Asset Management at Daman Investments, Ali Al-Adaw, said that the increased demand for the Dubai Electricity and Water Authority “DEWA” reflects the high demand from investors for the subscription, and gives confidence in the success of future IPOs in the Dubai market.
set body Dubai Electricity and Water “DEWA” The final price of the share in its initial public offering at 2.48 dirhams per share, which means that the company will raise 22.3 billion dirhams, equivalent to 6 billion dollars, that is, at the maximum price range that ranged between 2.25 and 2.48 dirhams per share.
The subscription was covered by about 15 times, as requests amounted to 315 billion dirhams, which makes it the second largest in the region after Aramco.
Regarding the recent increase in the Dewa offering from the previously announced percentage, Ali Al-Adaw said, in an interview with Al-Arabiya, today, Wednesday, that the beginning of the offering witnessed geopolitical problems between Russia and Ukraine, and the offering took place in a small size to find out the demand for it, and after that there was a great demand Consequently, the offering percentage was raised, and despite the increase in the percentage, it was covered by a large percentage, especially since DEWA has very strong fundamentals.
The Authority had tripled the shares offered for offering from 6.5% to 18% of the capital to reach 9 billion shares.
Note that the subscription period for individuals ended on the second of April, while the subscription period for institutional investors ended yesterday.
The director of asset management at Daman Investments expected that the percentage of allocation to individuals would be small.
It is expected that the shares allocated to the second tranche of individuals and employees will be announced next Monday.
Ali Al-Adaw explained that looking at IPOs in the region two years ago, the pace of listings increased and investors viewed them as new companies and sectors in the markets, and this is what happened in Saudi Arabia, Abu Dhabi and now in Dubai.
The enemy pointed to the importance of completing the momentum of DEWA’s subscription in 9 upcoming offerings in the UAE markets, especially with investors focusing on the UAE and seeing that the markets need to enter these companies to reflect the growth and size of the overall economy of the UAE.