Dubai's state-owned water, power utility plans IPO
Premium- Dubai Electricity and Water Authority (DEWA) PJSC was created in 1992 as a result of the merger of the Dubai Electricity Company and the Dubai Water Department.
Dubai's state-owned water and power utility has announced intention of going public by selling 6.5% of its stake or 3.5 billion shares and is seeking to list on the Dubai financial market.
Dubai Electricity and Water Authority (DEWA) PJSC was created in 1992 as a result of the merger of the Dubai Electricity Company and the Dubai Water Department. It is now a globally-leading fully integrated utilities company and the exclusive provider of electricity and potable water to Dubai’s 3.5 million residents and millions of people who visit every year.
DEWA said it is a key enabler of Dubai’s energy transition to net zero and 100% clean energy by 2050, and is focused on enabling a clean future for its customers and communities.
"This is a historical moment for DEWA as the first government entity in Dubai to go public. It reflects the immense faith and confidence by our wise leadership and the government of Dubai. As the exclusive provider of electricity and water services to Dubai, DEWA is incredibly proud to have played a part in the success of the Emirate," said HE Saeed Mohammed Al Tayer MD & CEO of DEWA.
The public offer part of a wider plan announced last November by Sheikh Maktoum bin Mohammed Al Maktoum, the son of Dubai's ruler Sheikh Mohammed bin Rashid Al Maktoum, to list 10 state industries on the stock market to boost its profile and raise new capital for the skyscraper-lined emirate.
Yet it comes amid increased volatility in markets worldwide given Russia's war on Ukraine. Meanwhile, past IPOs of major players in Dubai's economy have seen investors lose money and the companies ultimately go private again.
In a prospectus for investors, DEWA said it finished 2021 with a profit of $1.7 billion. It had profits of $1.8 billion in 2019, though they dipped in 2020 during the pandemic and its lockdowns to $1.4 billion. It paid dividends to Dubai government of $1.2 billion, $408 million and $544 million in 2019, 2020 and 2021, respectively.
MINT PREMIUM See All
The company plans to pay dividends twice a year to investors, with a minimum of $1.6 billion paid yearly over the next five years.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!