DEWA Shares’ Subscription Begins Today
STANDFIRST: The subscription period for individual and institutional investors begins for 3.52 billion shares, equivalent to 6.5% of the shares of the Dubai Electricity and Water Authority (DEWA) on Thursday.
The price range for the subscription is set between $0.61 2.25 and $0.67 per share, to enable the company raise $2.67 billion as against the company’s valuation of $33.76 billion, according to Arabic daily Al Khaleej.
Subscription for the first tranches (8% for individual subscribers) and the third (for qualified DEWA employees 2%) ends on 2 April 2022, while the subscription of qualified investors for the second tranche of 90% of the offering ends on 5 April 2022.
The final price and size of the offering shares will be announced on April 6, and the subscribers of the second tranche will be notified of the results of the final allocation of shares, while the subscribers of the first and third tranches will be notified on April 11 and the company will be listed on the Dubai Financial Market the next day.
How To Buy
The Dubai Financial Market called on shareholders to update their account data through the Dubai Financial Market (DFM) application. Retail investors need to have a UAE-based bank account and a DFM Investor Number, which is known as NIN, to buy DEWA shares.
NIN allows a retail investor to trade DFM and Nasdaq-listed stocks. A retail investor needs to fill a form, affix his/her signature and submit other relevant documents to Dubai Central Securities Depository LLC (Dubai CSD), which comes under the aegis of the Securities and Commodity Authority (SCA).
DEWA came into existence following the merger of Dubai Electricity Company and Dubai Water Department in 1992. Since then, DEWA has become the exclusive provider of electricity and water services in Dubai; It generates, transmit and distribute electricity and water to consumers throughout the Emirate.
DEWA owns 70% stake in the Emirates Central Cooling Systems Corporation (Empower), currently the world’s largest provider of district cooling services in terms of connected capacity. It also owns, manages, operates and maintains district cooling plants and its distribution networks throughout Dubai.
DEWA’s business witnessed rapid growth in tandem with the growth of Dubai’s economy, increasing its population and the development of its infrastructure. The acceleration of development in Dubai has led to a rapid increase in the demand for electricity and water services.
With its commitment to achieve the highest levels of availability, reliability, efficiency and quality, the company is capable to meet the increasing demand for electricity and water within the framework of Dubai’s urban plan to increase its population from 3.5 million people today to 5.8 million people by 2040.
DEWA also supports the Dubai Carbon Neutrality Strategy 2050 and its objectives are in line with the Dubai Clean Energy Strategy 2050, which aims to provide 100% of the Emirate’s energy production capacity from clean energy sources by 2050. DEWA aims to produce 100% of desalinated water using clean energy sources. and waste heat by 2030.