Wednesday, 13 April 2022

DEWA IPO: BlackRock, Vanguard Invest in $6.1 Billion DEWA Listing - Bloomberg

DEWA IPO: BlackRock, Vanguard Invest in $6.1 Billion DEWA Listing - Bloomberg

Dubai Electricity & Water Authority’s $6.1 billion initial public offering attracted global investors including BlackRock Inc. and Vanguard Group Inc., people familiar with the matter said.

Dubai’s main utility also drew in Fidelity Investments, Franklin Templeton and Singapore sovereign wealth fund GIC Pte, the people said, asking not to be identified as the information is private. T. Rowe Price also submitted orders, one of the people said.

Investors from the United Arab Emirates accounted for half of DEWA’s order book, the company said. About 30% went to international investors and the rest to those from the wider Gulf region.

DEWA received orders worth $86 billion for its IPO. The deal helped Dubai break into the world’s top five listing venues this year, marking a turnaround for its bourse that’s barely seen any action since 2017. Shares in the company jumped as much as 23% on debut Tuesday.

BlackRock, Vanguard and GIC declined to comment. T. Rowe Price, Franklin Templeton and Fidelity didn’t immediately respond to requests for comment.

DEWA’s IPO is the world’s second-biggest this year and the first of 10 planned privatizations in Dubai. The city aims to list firms including road-toll collection system Salik and business park operator Tecom Group, to revive its bourse and catch up with Abu Dhabi and Riyadh.

While markets around the world have been roiled by Russia’s invasion of Ukraine, the Middle East has sidestepped the worst of the volatility. DEWA almost tripled the size of its offer to 18% and priced the sale at the top end of a marketed range.

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