Two UAE-based companies announce near $200 million investment in landmark DEWA IPO

At least two UAE-based companies have invested a combined AED 734 million ($199,831,199) in the state utility company DEWA’s initial public offering (IPO), the official Emirates news agency WAM reported on Thursday.

Alpha Dhabi Holding PJSC, an Abu Dhabi-based conglomerate and subsidiary of the International Holding Company (IHC), has made an AED 367 million ($99,918,047) investment into the landmark IPO through its subsidiary Alpha Dhabi Partners Holding LLC.

Multiply Group, another Abu Dhabi-based holding company also announced that it will be investing AED367 million ($99,918,047) into the IPO as a cornerstone investor, WAM reported.

Emirates Investment Authority, state holding company ADQ, Multiply Group, Alpha Dhabi Partners and Investment Holdings Est will become cornerstone investors in the IPO with a total commitment of up to $1.3 billion, Reuters reported citing a statement.

DEWA, or the Dubai Electricity and Water Authority, is Dubai’s main power and water company. On March 24, it joined the ranks of the world’s largest utilities after unveiling plans to list at a $34 billion valuation.

DEWA is looking to raise as much as $2.2 billion in its initial public offering, in what would be the emirate’s biggest listing since DP World in 2007.

The company expects shares to list and trade on the Dubai Financial Market on April 12.

DEWA expects to pay a minimum annual dividend of AED 6.2 billion ($1.69 billion) over the next five years, starting in October 2022, with dividends planned twice a year – in April and October, Reuters reported.

Citigroup, Emirates NBD Capital and HSBC are joint global coordinators, while Credit Suisse, EFG Hermes, First Abu Dhabi Bank PJSC and Goldman Sachs are joint bookrunners.

Abu Dhabi National Energy Co PJSC will remain the largest listed utility in the Arabian Gulf.

ACWA Power International was the last utility to list in the Middle East. The stock surged by the daily limit on debut in Riyadh late last year and has since doubled in value.

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