DEWA, or the Dubai Water & Electricity Authority, is a well-known company in Dubai that was created by the merging of Dubai’s water department and electricity company. Established in 1959, these two companies operated independently until Sheikh Rashid bin Saeed Al Maktoum, the then Dubai ruler, merged them in 1992. The goal behind this amalgamation was to guarantee the proper production, transmission, and distribution of water and electricity throughout the emirate.
DEWA is a large company with a net worth of up to 54.16 billion in 2022, serving about 3.5 million consumers with its 13.4 gigawatts of electricity and 490 million gallons of water every day. The company estimates that its customer base will grow to 5.8 million consumers by 2040.
As a government-established agency, DEWA serves several purposes, including developing and maintaining water resources, supplying clean drinking water to residents, promoting sustainable development by enhancing water and energy efficiency and exploring and investing in alternative energy sources that are both less expensive and environmentally friendlier. To achieve these goals, DEWA has implemented three path-breaking initiatives.
The first initiative involves connecting solar panels (photovoltaic) to buildings and houses. DEWA encourages homeowners to install solar panels to generate electricity and then connect these panels to the company’s grid. Households consume the electricity they generate and sell any surplus back to the company, encouraging the use of green energy for sustainable development.
DEWA’s second initiative focuses on using advanced technology to make it easier for consumers to monitor their energy consumption and stay on top of their bills. This initiative includes installing smart meters and grids and developing new applications that offer automatic and detailed readings (both historical and current) to help consumers monitor their actual consumption for a given period.
The third initiative involves introducing charging stations for electric cars across Dubai. DEWA installs and manages both the infrastructure and operations of electric vehicles in the country and supports the use of electric cars to minimize air pollution and safeguard the environment in the region. To achieve these objectives more quickly, DEWA has partnered with various stakeholders, including airports, car manufacturers, shopping malls, the Dubai Municipality, Dubai RTA (Road and Transport Authority), car parks, petrol stations, and vehicle parks.
On 24th March 2022, DEWA announced the beginning of the DEWA IPO subscription. The company is ready to offer 6.5% of its share capital in an initial public offering (IPO) equivalent to 3.25 billion ordinary shares. On 30th March 2022, the company increased its stake size from 6.5% to 17% due to strong investor demand and oversubscription in all tranches. The price range per share is expected to range anywhere between Dh 2.25 and Dh 2.48. The expected subscription period will close on 2nd April 2022, for United Arab Emirates investors and on 5th April for international and domestic investors.
Investing in DEWA IPO presents a significant investment opportunity, as the company is one of the world’s most efficient and innovative companies with exponential growth. It has solid fundamentals and a robust growth outlook. The company anticipates clearing its dividends of not less than AED 6.2 billion yearly for the next five consecutive years, from October 2022 to April 2027. You can sell your shares anytime you wish on DFM at a competitive market price, while also enjoying capital appreciation.
To invest in DEWA IPO, you need to open an investor account in the Dubai Financial Market DFM. Your application will only be varied if you possess a DFM investor number (NIN). Once you have this number, the next step is to approach any local receiving bank and make a subscription. Different banks have different digital application processes, so you might need to contact your RM to help you navigate the entire application process. Wait for notification on 6th April 2022, when you will be updated regarding the allotment. If you are successful, you are good to go; otherwise, expect a full refund after 11th April 2022.
DEWA IPO offers retail and institutional investors, including banks, insurers, and DEWA employees, an opportunity to participate. DEWA employees and other retail investors can make an initial investment of an amount not less than Dhs 5,000, with subsequent investments of at least Dh 1,000. Institutional investors can invest a minimum of Dh 1,000,000 with no maximum limit. DEWA has clarified that the minimum guaranteed allocation per subscriber is 1000 shares, and trading is expected to begin on 12th April 2022. Those who participate will receive notification on 6th April 2022, while the rest will expect a refund on 12th April or later.
In conclusion, DEWA is a reputable company in Dubai that offers various services to enhance sustainable development in the region. Investing in DEWA IPO presents a unique opportunity to be part of this innovative and efficient company’s growth while reaping significant financial rewards in the process.