Dubai's DEWA utility goes public after raising $6B in IPO

Dubai’s Water and Electricity Authority, known as DEWA, has begun trading for the first time, after raising just over $6 billion during its initial public offering

DUBAI, United Arab Emirates -- Dubai’s Water and Electricity Authority, known as DEWA, began trading for the first time on Tuesday, after raising just over $6 billion during its initial public offering, making it the second largest offering ever in the Middle East.

While that figure still trails far below the record $29.4 billion raised by Saudi oil giant Aramco, it marks an inflection point for Dubai at a time when high oil prices are buoying the economies and spending power of energy-producing Gulf Arab states.

The government-owned utility opened trading on Dubai's stock exchange with a market cap of 124 billion dirhams, or what is roughly $33.7 billion. DEWA priced its shares at 2.48 dirhams each, or what is 68 cents a share, but traded, as expected, somewhat higher in its market debut before settling much of the day just under 2.9 dirhams a share. The company plans to pay dividends twice a year to investors.

The listing comes as DEWA, which is the exclusive electricity and water utility provider of Dubai, positions itself as central to the wider United Arab Emirates' energy transition to net zero by 2050.