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EFG Hermes completes advisory on $6.1bn IPO of state-owned DEWA on the DFM This is the largest ever listing in the Middle East since 2019 and a first-of-its-kind transaction of a public company in Dubai.
EFG Hermes — the leading investment bank franchise in Frontier Emerging Markets (FEM) — announced today that its investment banking division has successfully completed advisory on Dubai Electricity and Water Authority's (DEWA) $6.1bn initial public offering (IPO) on the Dubai Financial Market (DFM). This is the largest ever listing in the Middle East since 2019 and a first-of-its-kind transaction of a public company in Dubai. DEWA — Dubai's utilities giant and exclusive water and electricity provider in the emirate — listed 9bn shares today — representing 18% of its share capital — at a price of AED 2.48 per share, implying a market capitalisation of AED 124bn and making it the largest company on the DFM. DEWA's shares began trading today under the ticker DEWA UH EQUITY. "We're honoured to have advised on this historic listing — not just for the DFM but the Middle East as a whole — which has spurred unprecedented foreign and local investment into the market by giving them first-time access to Dubai's burgeoning energy sector," said Mohamed Fahmy — EFG Hermes' Co-Head of Investment Banking. "We believe that the DEWA offering will reignite activity on the DFM, and the strong investor appetite is testament to the interest of all investor types in the DFM and the overall Dubai growth story," added Fahmi. "With a healthy pipeline of IPOs lined up, the UAE boasts numerous and diverse investment opportunities for clients, and we're expecting it to become a regional hub for investors in the near future. The transaction follows an extremely successful year of executions for us in the GCC, where we advised on landmark listings such as ACWA Power's offering on Tadawul, ADNOC Drilling's milestone IPO on the ADX, and Fertiglobe's listing on the ADX." DEWA is a fully integrated utilities company and the exclusive provider of electricity and potable water to Dubai's 3.5m residents and millions of annual visitors. It is also the lynchpin of the emirate's net-zero energy transition by 2050 in line with the Dubai's 2050 Net-Zero Carbon Emissions Strategy and Dubai's 2050 Clean Energy Strategy. DEWA has added 16 substations at its Mohammed bin Rashid Al-Maktoum Solar Park and another district in 2021 on the heels of expectations that the emirate's population will grow to 5.8m in 2040. With the year just ended seeing energy demand increase by almost 10% in the emirate, it boosted the utility's investments in existing and completed electricity projects to AED 9.5bn ($2.59bn). DEWA also owns 70% of Empower, which currently the world's largest district cooling services provider by connected capacity. The firm also owns, manages, operates, and maintains district cooling plants and affiliated distribution networks across Dubai.
