Invest in Dubai’s future: How to buy shares in DEWA?
DEWA has a significant role in the future development of Dubai and its transition to a net-zero economy by 2050. Now, you can also have a stake in shaping a green future for the emirate!
Since the utility company has announced its plan to list 6.5 per cent of its issued share capital on the financial market, people want to know how they can invest in this prospective blue-chip stock. Our guide has all the information about the emirate’s biggest stock market float to date. Read on to find out how you can buy shares in DEWA, minimum investment required and more.
THE OPPORTUNITY
DEWA announced its decision to conduct an initial public offering (IPO) to trade 3.25 billion shares (equivalent to 6.5 per cent of the firm’s existing shares) with the Dubai Financial Market (DFM).
The sheer size of the utility giant’s offering is one of the reasons why investor interest in the IPO could set a new high for the Dubai IPO. This strategic decision will further boost the financial market of the emirate under the Dubai Markets Supervisory Committee’s plan.
Dubai Electricity and Water Authority (DEWA) was formed in 1992 following the merger between the Dubai Electric Company and the Dubai Water Department. Today, it is a fully integrated utility company that adheres to the UAE Energy Strategy 2050 and is on a mission to eliminate Dubai’s carbon emissions. Also, it is the first government entity in Dubai to proceed with an IPO.
WHO CAN INVEST?
Anyone from retail investors to institutional investors, including entities such as banks, funds, insurers and employees of DEWA can buy the company’s shares. The following are the three portions or tranches offered to potential investors:
- The first tranche of shares is available to retail investors or non-professional individual investors. These investors must have a UAE-based bank account and an updated DFM Investor Number (NIN). If you do not have a NIN, you can get one easily through the eServices at the DFM website or via the DFM Smart Services app.
- The second tranche of shares is offered to professional investors (legal entities such as banks, insurers, funds, or other large institutions).
- The third tranche of the shares will be made available to eligible employees of DEWA.
Retail investors and DEWA employees must make a minimum investment of AED 5,000. Additional investments are allowed in lots of at least AED 1,000. On the other hand, professional investors are subject to a base subscription of AED 1M.
Note that there are no maximum limits.
STEPS TO BUY DEWA STOCK
Since announcing its intention to float on the Dubai Financial Market, the company has received strong interest from local and international investors. Here’s how you can buy DEWA shares:
- You need to send a subscription form through any receiving bank to book your shares. Investors can visit the nearest branch, contact their relationship manager or check out the bank’s website.
- Investors need to complete all relevant fields in the subscription application.
- Then, you need to submit it to the bank with all the required documents and pay the subscription amount.
- Once you have subscribed, then the shares will be allocated to you.
Note that investors may or may not get the full allocation of their order. However, any remaining balance will be returned to them.
FAQS
WHAT IS THE SUBSCRIPTION PERIOD FOR THE DEWA INVESTMENT PROJECT?
Retail investors can purchase shares in DEWA until April 2. On the other hand, institutional investors have until April 15 to buy shares in DEWA.
WHICH BANKS CAN YOU SUBSCRIBE FROM?
To subscribe to the offering, you can contact one of the receiving banks, which include Emirates NBD Bank, Abu Dhabi Commercial Bank, Ajman Bank, Al Maryah Community Bank, First Abu Dhabi Bank, Mashreq Bank, ADIB, Dubai Islamic Bank, Emirates Islamic Bank and Sharjah Islamic Bank.
WHY IS THE DUBAI GOVERNMENT BETTING ON IPOS?
The Dubai Government plans to increase the emirate’s stock market through IPOs. DEWA’s listing will help drive the market and usher in a new phase of advancement.
That concludes our guide to buying shares in Dubai Electricity and Water Authority. As the subscription period will only last until next month, investors should act quickly to secure their shares and reap the benefits. Are you new to the stock market? Check out our guide to the Dubai stock market and you’ll be an expert investor in no time.
