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 closing up 16% at 2.87 dirhams, giving it a market value of $39 billion. The stock priced at 2.48 dirhams per share in the IPO, which was the top end of the marketed range.
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 an 18% stake 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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