DEWA IPO: Dubai Utility Company’s Shares Surge in Trading Debut - Bloomberg
Dubai Electricity & Water Authority jumped in its trading debut after raising $6.1 billion in the world’s second-biggest initial public offering this year, kick-starting a flurry of listings out of the city.
Shares of Dubai’s main utility soared as much as 23% before paring gains to 17% at 11:54 a.m. local time. The stock is trading at 2.89 dirhams after an offer price of 2.48 dirhams, which was the top end of the marketed range. The IPO valued DEWA at $33.8 billion.
The deal is the latest sign of feverish appetite for IPOs from the Gulf Arab region. DEWA almost tripled the size of its offer to 18% in the face of huge demand, drawing orders worth $86 billion, excluding cornerstone and strategic investors.
“DEWA’s performance on the first day was expected given the strong oversubscription seen in the IPO,” said Faisal Hasan, chief investment officer at Al Mal Capital. “It is an attractive dividend play in the conservative utilities sector and will be part of portfolios as a defensive stock.”
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