Expectations that the return on the IPO will range between 5% and 5.5%.

It is expected that the annual return on the dividends of the Dubai Electricity and Water Authority "DEWA", based on the announced annual distributions and the subscription price range, ranges between 5% and 5.51%, and these A good percentage entices the subscribers of the shares.

Dewa intends to distribute dividends to its shareholders twice each fiscal year after the completion of the offering; It will distribute the first batch of profits in April and the second in October each year, according to the Emirati newspaper Al Khaleej.

The authority expects the total distributions to not be less than 6.2 billion dirhams annually over the next five years (October 2022 - April 2027).

For the avoidance of doubt, the company expects to distribute the first dividend of 3.1 billion dirhams after the international offering; This is for the second half of 2022 to be paid to shareholders in October 2022.

The Dubai Electricity and Water Authority has determined the price range for its shares to be offered in the Dubai Financial Market, between 2.25 dirhams to 2.48 dirhams per share, which means that the market value of the authority upon listing will range Between 112.5 billion dirhams and 124 billion dirhams, making it the largest company listed on the Dubai market in terms of market capitalization.

The company's paid-up capital, according to the prospectus, was set to be 500 million dirhams, distributed over 50 billion fully paid cash shares, with a nominal value of 0.01 dirhams (one fils). per share.

Some banks have offered investors financing options with varying interest rates, to provide leverage in the DEWA subscription.

In light of the strong demand for the subscription that started on March 24, for only 6.5% of DEWA's capital, and with 6 major investors investing more than 50% From the proposed percentage, the expectations are that the allocation will be low, which raises the cost of acquiring shares through subscription financed by banks.

Banks provided investors with leverage 1 to 5 or 1 to 10 times; This is according to the financial solvency of the investor, and according to the type of individual or institutional investment. The interest on financing also ranged between 0.5% and 1% on the entire amount before allocation.