12 Apr 2022
DEWA Shares Soar 20% More than IPO Price
The Index Today
Dubai’s utility body has witnessed an upsurge in shares, climbing by nearly 20% more than its initial public offering (IPO) of $6.1 billion after its market launch on Tuesday.
According to Reuters, the Dubai Electricity and Water Authority’s (DEWA) shares rose to 2.98 dirhams ($0.8114) during early trade, from its IPO cost of AED 2.48 per share. The current surge in shares is the region’s highest since Saudi Arabia’s Aramco.
MENA-based investment bank EFG Hermes informed its clientele that it views DEWA as a good contender for fast entry into the FTSE’s emerging markets index. The bank also projects that DEWA can foresee a minimum influx of $53 million from FTSE passive trackers with any rise in price to perpetuate more direct inflows.
DEWA’s IPO, which was introduced to gain funds for Dubai’s development, will also strengthen the emirate’s exchange to compete with bigger rivals in the MENA region, including Abu Dhabi and Saudi Arabia, reported Reuters.