Dubai: Utico, the UAE’s utility firm plans a share buyback ahead of its Initial Public Offering (IPO) and stock market listing later this year. The privately-owned firm is in talks with six banks for the IPO and listing.

“As part of the IPO preparations, shareholding changes are underway where consolidation is ongoing,” said Richard Menezes, Founder and Managing Director of Utico.

“Talks are ongoing with a major Fund and an investor to acquire the firm 100 percent from its current investors and take it for an IPO in Q4 this year.”

As founder of the company, Menezes said the appetite for growth and market potential was only limited by Risk vs Reward. Like-minded investors are backing the move to take the company forward and bring alignment to Utico’s sustainable future, he said.

Utico is a DNV UK rated Sustainable Company. Utico is seeking primary listing at the Dubai Financial Market (DFM), and may consider a dual listing after discussing with the Board and shareholders.

Meanwhile, Utico is engaging with Goldman Sachs, HSBC, Standard Chartered, Emirates NBD (ENBD), First Abu Dhabi Bank and Citi for the IPO and a potential listing. The expected listing would be in the range of Dubai Electricity & Water Authority (DEWA) and ACWA Power multiples with a liquid market seeking high growth sustainable stocks.

With the recent listing of DEWA and ACWA with multiples of 19 to 48 times, EBDITA as listed now offers yields of 4.6 percent and 1.5 percent respectively, said Menezes, adding that Utico would be a very attractive proposition with an annual dividend yield increase of 6 to 8 percent beating inflation and market expectations.

With DEWA classified in a fixed income category and ACWA in the growth category, Utico is placed between the two as the UAE’s largest full spectrum private utility service provider and as the largest IWP developer. This classifies Utico as a Fixed Income Plus stock which would bring sustainable returns and growth for current and alternative new generation investors.

-Ends-

ABOUT UTICO

Utico is the UAE’s largest Full service private utility. It supplies utilities with direct metering in four emirates as retail and bulk supply, through its own transmission and distribution network spanning a 800skq.m area with over 250,000 population. It owns and operates a 600kms network with approx. 1million m3 of water in operation and development and over 4million m3 of development in active pipeline. It manufactures over 35% of development value of an IWP project in the UAE and employs about fulltime 600 professionals. Its business operations span the GCC and MENA region

For media queries please contact: stanley.carvalho@uticome.co