Shares in Dubai’s DEWA soar in Gulf region’s biggest IPO since 2019

A man watches stock movements on a display at the Dubai Financial Market on Tuesday. DEWA shares soared 19% in the first minutes of trading before closing up 15.72% at 2.87 dirhams ($0.78), as the Dubai stock exchange was down 0.5%.

Shares in the Dubai Electricity and Water Authority rose nearly 16% on Tuesday in the Gulf region’s biggest initial public offering since Saudi oil giant Aramco in 2019. DEWA shares soared 19% in the first minutes of trading before closing up 15.72% at 2.87 dirhams ($0.78), as the Dubai stock exchange was down 0.5%. The Dubai-owned utility last week said it had raised 22.3bn dirhams ($6.1bn) in the Gulf’s largest IPO since Aramco’s world-record flotation. Some 9bn shares, an 18% stake, were listed, with the initial price set at 2.48 dirhams ($0.68). The deal, in which more than 65,000 institutional and retail investors participated, values the company at 124bn dirhams ($33.9bn), the company said. The record for the largest public listing in the Gulf, and in the world, is held by Aramco, which raised $29.4bn by listing a 1.7% stake on the Saudi Stock Exchange in December 2019. The emirate of Dubai, which lacks the large oil reserves of some of its neighbours, has diversified its economy by focusing on finance, tourism and trade. But it is facing increased competition in the region, notably from Saudi Arabia, which is also seeking to reduce its dependence on oil and gas.