The Dubai government intends to sell a stake in Dubai Electricity and Water Authority Dewa, valued at more than $25 billion, in a deal likely to be among the largest in Dubai.
According to Arabiya Net, the Dubai Electricity and Water Authority's initial public offering (IPO) is likely to be the first of many upcoming government offerings.
Earlier on Tuesday, Dubai's deputy ruler, Sheikh Maktoum bin Mohammed bin Rashid, said Dubai would sell a stake in the Dubai Electricity and Water Authority in the coming months, as The shares will be listed in phases due to the huge asset size. The Dubai plan also aims to launch more companies in the energy, retail and logistics sectors.
The planned listing comes a day after Dubai announced it would sell stakes in 10 companies.
For his part, Mohamed Ali Yassin, chief strategist at Al Dhabi Capital Limited, said: "The move is great and the speed with which this announcement came shows that Dubai has a plan ready to be implemented." . Expecting great demand from investors given the amount of money the company makes, according to Bloomberg.
The Dubai Electricity and Water Authority provides its services to 3.4 million people in the emirate, along with its subsidiaries, and has assets amounting to 190 billion dirhams ($52 billion). . It reported a net income of 4.9 billion dirhams in 2019, according to the latest data available on Bloomberg.
The company is also debt-free after paying its last commercial bond last year, according to CEO Saeed Mohammed Al Tayer.
In turn, Miguel Azevedo, Head of Investment Banking for the Middle East and Africa at Citigroup, said: We believe that the exceptionally high quality of Dubai's state-owned enterprises is a guarantee of the success of The privatization program, according to what the agency reported.
