Published: Thu 24 Mar 2022, 4:18 PM

Last updated: Thu 24 Mar 2022, 4:38 PM

Dubai Electricity and Water Authority (Dewa) will pay Dh3.1 billion first dividend after the listing on the Dubai Financial Market later this year.

According to Dewa's prospectus, it intends to pay dividends twice each year and the first dividend will be paid in the second half of this year by October 2022.

The utility services provider on Thursday announced the launch of its initial public offering (IPO) and set an indicative price range between Dh2.25 and Dh2.48 per share. The final offer price for Dewa will be determined through a book-building process and is expected to be announced on April 6, 2022.

The IPO subscription started on Thursday and will run until April 2 for the UAE retail investors and until April 5, 2022, for the institutional investors.

“The company intends to pay dividends twice each fiscal year after the offering in April and October of each year. The group expects to pay a minimum dividend amount of Dh6.2 billion per annum, over the next five years (October 2022- April 2027). For the avoidance of doubt, the company expects to pay a first dividend payment of Dh3.1 billion after the offering, for the second half of 2022, by October 2022,” it said in the prospectus.

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On January 31, 2022, Dewa's Board of Directors had approved a dividend payment of Dh10 billion to the selling shareholder.

Dewa said Emirates Investment Authority, ADQ, UAE Strategic Investment Fund, Multiply Group, Alpha Dhabi Partners and Investment Holdings Est. became cornerstone investors in the IPO with a total commitment of up to Dh4.7 billion.

The stock is expected to be listed on DFM on April 12, 2022.

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