Dubai’s state water and power company, DEWA, or the Dubai Electricity and Water Authority has announced the share price range for its upcoming IPO and is looking to raise up to AED 8.06 billion ($2.19 billion).

The share price has been set between AED 2.25 and AED 2.48 per share, implying a market capitalisation of between AED 112.50 billion ($ 30.63 billion), the company said in a press release today, making DEWA the largest company on the Dubai Financial Market by capitalisation.

DEWA is expected to use the IPO to “explore the use of new and innovative storage technologies” in renewable energy and target international expansion for its district cooling services to Saudi Arabia, Qatar and other regional markets.

DEWA will offer 3.25 billion shares, equivalent to 6.5 percent of the company’s existing shares.

Emirates Investment Authority, ADQ, UAE Strategic Investment Fund, Multiply Group, Alpha Dhabi Partners and Investment Holdings Est. are to become cornerstone investors with a commitment of up to AED 4.7 billion.

The IPO subscription period starts today and runs until 2 April for the UAE retail offering and 5 April 2022 for the qualified investor offering.

The final offer price will be determined through a book building process and is expected to be announced on 6 April, with admission of the shares to trading expected to start on 12 April.

Mohammed Al Tayer, managing director and CEO of DEWA, said the company is central to the emirate’s transition to net zero carbon emissions by 2050.

“This IPO represents an opportunity for investors to participate in a unique growth story that is underpinned by the ambition of Dubai and the United Arab Emirates.

“Since announcing our intention to float on the Dubai Financial Market last week, we have received strong interest from local and international investors that recognise our determination to shape a green future for Dubai.”

(Reporting by Imogen Lillywhite; editing by  Seban Scaria)

imogen.lillywhite@lseg.com