Abu Dhabi – Mubasher: Waleed Al-Khatib, managing partner at Global Shares and Bonds, said that the valuation of Dubai Electricity and Water Authority “Dewa” at $25 billion is not a simple figure, especially since its profits amounted to 6 billion dirhams in 2021.
Walid Al-Khatib explained that the company will offer 6.5% of its shares, and awaits approval of pricing, determining the size of the offering and comparing it with the profit rate, and then the picture will become clearer, according to Al-Arabiya website.
Al-Khatib added that it is very important that the multipliers of profit not be more than 10 or 15 times, and that the rate of return on dividends is not less than 5 to 6%, in order to be attractive to investors, with the need to follow an annual and semi-annual distribution policy due to the desire of investors to own financial positions.
He pointed out that the demand for the offering depends on pricing and not exaggerating the evaluation, and it is expected that it will have a very strong turnout, especially from institutions more than individuals, and it will be covered well, especially if the pricing is related to the institutions’ evaluation of the company, but it may not be like the big offerings. In the Abu Dhabi market due to its greater financial strength, but it will be a distinguished listing for the Dubai Financial Market.
It is noteworthy that the Dubai Electricity and Water Authority (DEWA) has officially announced its intention to proceed with an initial public offering to list 3.25 billion shares, constituting 6.5% of its shares, on the Dubai Financial Market.
The company said that the start of the subscription period will be on Thursday, March 24, 2022, at which time the price range will be announced, while the company’s shares will start trading on the Dubai market on Tuesday, April 12.
This is the first initial public offering out of ten planned for companies linked to the Dubai government, with the aim of reviving the stock exchange.
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