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Today, EFG Hermes announced that the Underwriting and Underwriting division of the leading investment bank in emerging and frontier markets has successfully advised on the $6.1 billion IPO of Dubai Electricity and Water Authority (DEWA) on the Dubai Financial Market.
This offering is the largest of its kind in the Middle East market since 2019, and is the first of its kind for a publicly owned company in Dubai.
Dubai Electricity and Water Authority (DEWA), the exclusive provider of water and electricity in the Emirate of Dubai, has offered 9 billion shares, or 18% of its shares – at a price of 2.48 dirhams per share – with a market value of 124 billion dirhams, which makes it the largest listed company on the Dubai Financial Market. . Trading in the company’s shares started today under the symbol (DEWA UH EQUITY).
In this context, Mohamed Fahmy, co-head of the promotion and underwriting sector at EFG Hermes, expressed his pride in the group’s role as the initial offering manager in this historic deal in the Dubai Financial Market and the Middle East in general, as the deal opened the door to the entry of unauthorized international and local investments. Preceded to market by the promising energy sector in Dubai for the first time.
Fahmy added, “We believe DEWA’s offering will boost activity in the DFM, and the strong investor appetite is a testament to the interest of all types of investors in the DFM and the overall growth story in Dubai.”
He stressed that the upcoming IPOs in the UAE offer promising and diversified opportunities for investors, noting that EFG Hermes expects the UAE to become an attractive regional center for investors in the near term.
Fahmy added that this deal is an extension of the record of achievements that EFG Hermes is unique in executing major financial market deals in the Gulf Cooperation Council countries, especially after the success of the ADNOC Drilling and Fertiglobe shares deal in the Abu Dhabi Securities Exchange, as well as the completion of the offering. ACWA Power shares in the Saudi Stock Exchange (Tadawul).
Dubai Electricity and Water Authority (DEWA) is an integrated company and a global leader in the field of public utilities. It is the sole provider of electricity and water services to the 3.5 million residents of the Emirate of Dubai, in addition to the millions of visitors who visit it annually.
DEWA is a key driver of Dubai’s energy transformation efforts to achieve carbon neutrality by 2050 and the goals of the Dubai Clean Energy Strategy 2050.
Dubai Electricity and Water Authority added 16 sub-stations in the Mohammed bin Rashid Al Maktoum Solar Energy Complex and another area in 2021, in light of expectations that the emirate’s population will grow to 5.8 million by 2040.
With the end of 2021, which witnessed a growth in demand for energy sources by approximately 10% in Dubai, the company has pumped more investments in electricity projects, whether existing or completed, to reach 9.5 billion UAE dirhams (equivalent to 2.59 billion dollars).
Dubai Electricity and Water Authority owns 70% of Empower, the world’s largest provider of district cooling services in terms of connected capacity. The Authority also owns, manages, operates and maintains district cooling plants and its distribution networks throughout the Emirate of Dubai.
It is worth noting that the offering of the shares of the Dubai Electricity and Water Authority “DEWA” comes within the framework of Dubai’s plans to complete the initial public offering of ten state-owned companies this year, as part of its efforts to enhance and diversify the shares listed on the financial market, as it aims to bring the market value of the Dubai Financial Market index to 3 trillions of dirhams (about $816.86 billion), which will lead to the consolidation of the principles of transparency with regard to standards of good governance.
It is noteworthy that the Abu Dhabi Securities Exchange succeeded in completing 9 initial offerings during 2021, and 13 other deals are expected to be completed during 2022, and ranked as the best performing financial market in the world in 2021.
The year 2021 represented a milestone in the record of achievements in the promotion and underwriting sector of EFG Hermes, as the sector succeeded in completing a group of the most prominent transactions in the markets of the Gulf Cooperation Council countries. This included the deal to offer the shares of “Yahsat” on the Abu Dhabi Stock Exchange, at a value of AED 2.7 billion.
The sector also acted as the joint offering manager and underwriter in the public offering of “Al-Khorayef” Water Purification and Energy Company on the Saudi Stock Exchange (Tadawul) at a value of $144 million.
The promotion and underwriting sector succeeded in completing 41 deals during 2021, with a total value of more than 7.9 billion dollars, ranging from deals in the stock markets, arranging and issuing debt, and merging and acquisitions.
As a result, the sector won a number of awards, including the “Best Investment Bank in Frontier Markets” and the “Best Institution in Managing Debt Markets Transactions in Africa” from Global Finance, as well as the “Best Investment Bank in Egypt” in the Asiamoney survey, to In addition to the award for the “Best Investment Bank in Egypt” and the award for the best equity management company in the UAE, under the auspices of the international organization “EMEA Finance”.
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