Dubai Electricity and Water Authority said on 30 March that following approval from the UAE Securities and Commodities Authority it had exercised its right to increase the number of shares offered in its initial public offering from 3.25bn ordinary shares to 8.5bn ordinary shares.

The move will result in a free float of 17% of DEWA's share capital, with the Government of Dubai continuing to own 83% of DEWA's share capital.

The enlarged tranche of shares is anticipated to raise as much as $5.7bn in what is the region's biggest IPO since Saudi Aramco's record $29.4bn listing in 2019.

H.E Saeed Mohammed Al Tayer (pictured) is the managing director and chief executive of DEWA.

DEWA has also received approval from the SCA to increase the size of the tranche reserved for qualified investors (which includes the new Strategic Investors) from 5.9% (representing up to 2,925,000,000 shares) to up to 16.4% of the Company's share capital (representing up to 8,175,000,000 shares).  

Excluding the New Strategic Investors, who are locked up for between 180 and 365 days, the deal (including previously announced cornerstones) increased from 6.5% to 10% of the company's share capital.  The size of the retail and employee tranches will remain the same.

The statement said: "The new offering size was determined by the Government of Dubai as the selling shareholder, following DEWA's decision to set the offer price range per share between AED 2.25 and 2.48 per ordinary share on 24 March 2022, providing investors with a highly attractive value proposition that reflects the Government of Dubai's long-term confidence in DEWA's growth trajectory. 

"The decision also reflected DEWA's prioritization of supporting aftermarket trading performance post-listing."  

The subscription period for the DEWA IPO remains unchanged and will close on 2 April 2022 for UAE retail investors and on 5 April 2022 for qualified domestic and international institutional investors. DEWA is expected to list on the Dubai Financial Market on or around 12 April 2022.

DEWA, the exclusive electricity and water utility provider in Dubai, was created in 1992 as a result of the merger of the Dubai Electricity Company and the Dubai Water Department.

The Group generates, transmits and distributes electricity and potable water to end users throughout Dubai. 

It owns 70% of Empower, currently the world's largest district cooling services provider by connected capacity, and owns, manages, operates and maintains district cooling plants and affiliated distribution networks across Dubai.

The Group also comprises a number of other businesses including Mai Dubai, a manufacturer and distributor of bottled water, Digital DEWA, a digital business solutions company, and Etihad ESCO, a company focused on the development and implementation of energy efficient solutions.

DEWA further said it was ready to meet the increasing demand for electricity and water in the Emirate, which is planning to grow from around 3.5 million people today to 5.8 million people by 2040. 

"DEWA is therefore both integral to, and benefits from, Dubai's past and current economic growth, while also playing a key role in Dubai's green energy transition process, which is a central pillar of the Group's strategic direction."

The Group expects to supply 100% of water capacity from desalinated water by 2030 using clean energy and waste heat.