This information was tweeted by Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance.
“Dubai Electricity and Water Authority (DEWA) represents one of Dubai's development hubs, and investing in it is an investment in Dubai's future,” the tweet said. “We will consider, during the listing, that it be phased, taking into account the size of the huge assets that DEWA includes and its position within the Dubai economy.”
Investors to profit
The DEWA listing will allow investors to access “shares in profitable companies”, and “represents a major step that will support the financial markets in the emirate”, said a statement.
It is not known how much of the DEWA equity will be offered to the public, but analysts reckon the retail and institutional investor will be sizeable. Of particular interest would be DEWA’s continued push into renewable energy, including building the biggest solar powered plant.
Dubai plans to sell shares in its main utility, valuing the firm at more than $25 billion in a deal that will rank among the Emirate's biggest listings, Bloomberg reported, citing people familiar with the matter.
First of many
Dubai Electricity and Water Authority's initial public offering is likely to be the first of many as the planned listing comes a day after the announcement that Dubai would sell stakes in 10 state and state-related firms on the Dubai Financial Market (DFM).
Analysts opine how the move can help bolster DFM’s market trading volumes and welcomed the move that comes as bourses in the region and the GCC are pushing for more listings and share offerings.
The latest announcement boosted shares of Dubai Financial Market by more than 14 per cent on Tuesday, its biggest intraday gain in about 18 months.
The benchmark Dubai index ended nearly 4 per cent higher the same day.