From: Malik Salama
Dubai – Mubasher: Dubai Electricity and Water Authority (DEWA), the exclusive provider of electricity and water services in the Emirate of Dubai, announced yesterday, Tuesday, that the Dubai government has offered 3.25 billion of its shares for public subscription, equivalent to 6.5 percent of the total issued shares in its capital.
Mubasher Information, through what was announced by the official sources, is trying to answer in the following report how to participate in the offering of “DEWA” in the Dubai inch.
What is the objective of the Dubai Electricity and Water Authority to be listed on the Dubai Stock Exchange?
DEWA aims to capitalize on long-term access to financial markets in support of its ambitious goal of driving Dubai’s transformation into a low-carbon, climate-resilient economy.
How was the “Dubai Electricity and Water Authority” distinguished from others by announcing its subscription to the stock exchange? (What are the advantages of listing DEWA?)
- Dewa’s profits increased by 20 percent during 2021, reaching 6.123 billion dirhams at the end of 2021, compared to profits of 5.094 billion dirhams at the end of 2020.
- Revenues increased by 6 percent to reach 23.824 billion dirhams at the end of 2021, compared to revenues of 22.461 billion dirhams at the end of 2020.
- Other revenues increased to reach 922 million dirhams at the end of 2021, compared to 378 million dirhams at the end of 2020.
- The authority has a strong balance sheet with a low net debt of just 17.6 billion dirhams in 2021.
- It will pay dividends twice each fiscal year after the offering in April and October of each year.
- The authority’s total production capacity of electricity is currently 13.4 gigawatts, and it has a large group of projects under implementation that are expected to contribute to raising its production capacity to higher levels.
- It is expected that the amount of dividends will be paid at about 6.2 billion dirhams annually and over the next five years, from October 2022 until April 2027.
How can investors participate in the IPO?
Investors’ participation in the Dubai Electricity and Water Authority IPO will be available on the main DFM platform from March 24 to April 2.
When does the DEWA subscription period start and when does it end?
The offering period begins on March 24 for all investor segments and ends on April 2 for individual investors and eligible Dubai Electricity and Water Authority employees, and on April 5, 2022 for professional investors.
How much is the offering price per share?
The final offer price will be determined on April 6, 2022, and a notification of the final allotment will be sent to investors in the first and third tranches on April 11, 2022.
What is the number of shares available for public subscription of the Authority’s shares on the Dubai Financial Market?
DEWA offers 3.25 billion shares for public subscription, representing 6.5% of the total issued shares in the capital of Dubai Electricity and Water Authority. DEWA reserves the right to increase the size of the offering at any time before the end of the subscription period.
Is it possible to know the number of shares acquired?
Notification of final allotment will be sent to investors in Tranche 1 and Tranche 3 by SMS on April 11, 2022.
How many shares are there for investor segments and individual subscribers?
Shares will be offered for the first tranche, and 8% of the offering shares, which represent 260 million shares, will be allocated to the first tranche, and 90% of the offering shares, which represent 2,925 billion shares, will be allocated to the second tranche.
90% of the shares of the offering will be allocated to professional investors, the “second tranche”.
Shares are offered for the third tranche, and 2% of the offering shares, which represent 65 million shares, are allocated to the third tranche, which includes DEWA employees.
Is this subscription in line with the provisions of Islamic Sharia?
The internal Shariah Supervisory Committees of Emirates NBD and HSBC Bank Middle East Limited issued statements confirming, according to their opinion, the compatibility of the offering with the provisions of Islamic Sharia.
Will the Authority announce in the future the offering of more shares?
Shares owned by the Government of Dubai, after the completion of the offering, are subject to a trading ban period starting from the date of listing and ending after 6 months, as the Authority only considers completing this initial public offering process.
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