The Dubai utilities giant DEWA is set to go public in April, marking the beginning of an IPO boom.

• The Dubai Water and Electricity Authority (DEWA) intends to sell a 6.5% stake through a public offering of 3.25 billion shares.
• Dubai's 3.5 million residents rely on DEWA, the exclusive provider of water, electricity, and district cooling, for their daily needs. With an installed electricity capacity of 13.4 gigawatts and the ability to produce 490 million imperial gallons of desalinated water each day, DEWA is a vital source of energy and water in the region.

The Dubai Financial Market will soon list Dubai's state water and power company, DEWA, after it releases an ambitious share prospectus, potentially making it the largest public offering in the emirate.

The Dubai Water and Electricity Authority (DEWA) plans to sell a 6.5% stake by offering 3.25 billion shares in its public offering. The price range is expected to be announced by March 24, and shares could list on the Dubai Financial Market (DFM) by April 12, according to its prospectus released Tuesday.

Saeed Mohammed Al Tayer, DEWA's Chief Executive, stated that this is a significant moment in the history of DEWA as it is the first government entity in Dubai to go public.

Dubai's sole provider of water, electricity, and district cooling to its 3.5 million residents, DEWA, has a 13.4 gigawatts installed electricity capacity and can produce 490 million imperial gallons of desalinated water daily. The utility's earnings last year were $3.3 billion, and it plans to pay a minimum dividend of $1.69 billion to future investors over the next five years.

As the population in Dubai is predicted to increase from approximately 3.5 million people presently to 5.8 million people by 2040, DEWA anticipates a rise in demand for its water and electricity services, according to Al Tayer.

The Dubai government will retain ownership of the company and DEWA will not receive any proceeds from the offering. DEWA aims to use the public offering to explore new storage technologies in renewable energy and expand its district cooling services to Saudi Arabia, Qatar, and other regional markets.

The prospectus stated that growth is anticipated due to the Group's investments in new technologies, such as green hydrogen, energy storage, electric vehicle charging, and smart water projects.

Dubai aims to revive its capital markets by going public, as it has seen a decline in interest in recent years. Meanwhile, rival bourses in Abu Dhabi and Riyadh have experienced growth in listings, trading volumes, foreign ownership, and retail investor participation during the Covid-19 recovery.

Dubai is considering listing up to 10 state-owned entities this year, with Salik and Tecom being potential candidates. There have been rumors that businesses within Emirates Group, including dnata, Skywards, and Duty Free, are also being considered for a public offer.