The Dubai Electricity and Water Authority (DEWA) has identified the investment banks that will undertake the largest-ever listing in Dubai's history.
According to Arabiya Net, sources told Bloomberg Agency that the authority has chosen Citigroup, HSBC Holdings Plc, and Emirates NBD PJSC, to lead Subtraction.
As the sources have determined, the value of the company, according to the offering price, ranges between $20 billion and $25 billion.
The Dubai government said in early November that it wanted to sell shares in 10 government-backed companies, in a bid to revive trading volumes and keep pace with competing exchanges. Private and family businesses were encouraged to follow suit to help deepen Dubai's capital market.
One source explained that the Dubai Electricity and Water Authority has also selected other banks to work on selling shares in smaller roles.
He also indicated that the 25% quota, which is required for listings in the Dubai market, will not be offered, and a smaller quota may be offered.
Catering to Dubai's 3.4 million residents, the company distributed 12.3 gigawatts of power last year and reported net income of $1.3 billion for 2019.
Deliberations are ongoing, and the details of the planned offer may change, sources said.
Representatives of Dubai Electricity and Water Authority, HSBC and Emirates NBD did not respond to requests for comment, while a Citigroup spokesperson declined to comment.
