DEWA launches first of 10 planned listings

The Dubai Electricity and Water Authority (DEWA) has launched the first initial public offering among 10 planned listings of state-linked companies aimed at reviving the domestic stock exchange.

The state utility announced its intention to float in an emailed statement, adding that the Dubai government planned to offer 3.25 billion shares, or a stake of 6.5 per cent of the company.

A subsequent listing of DEWA is expected on the Dubai Financial Market in April, it said.

The company reported adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of AED 12.1 billion ($3.29 billion) last year, with net income of AED 6.6 billion, it said.

The planned listing comes after His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, in November announced plans to take 10 government-linked companies public to boost stock market activity. 

The listing plans aim to help the Dubai stock market compete more effectively with bigger exchanges in the region.

DEWA expects to pay a minimum annual dividend of AED 6.2 billion ($1.69 billion) over the next five years, starting from October 22, it added, with dividends planned twice a year, in April and October.

The company is offering two tranches, to institutional investors and retail investors, from March 24.

The shares held by the Dubai government after the IPO are subject to a six-month lock-in period, it said.

Dubai's Emirates NBD is the financial adviser on the transaction and US advisory Moelis & Co is the independent financial adviser.

Citigroup Global Markets, Emirates NBD's investment banking arm, and HSBC are its joint global coordinators, the company said.

Credit Suisse, EFG Hermes, First Abu Dhabi Bank and Goldman Sachs are joint bookrunners, the company added.