Dewa IPO: company increases number of shares on offer and may raise $6.08bn

Dubai Electricity and Water Authority has increased the number of shares available in its initial public offering to nine billion ordinary shares, from 8.5 billion, resulting in a free float of 18 per cent of its share capital amid “significant demand and oversubscription from retail investors”.

Dewa stands to raise between Dh20.25 billion ($5.51bn) and Dh22.32bn ($6.08bn), based on its decision to set the offer price range between Dh2.25 and Dh2.48 per ordinary share on March 24.

The increase in the IPO size was approved by the UAE Securities and Commodities Authority (SCA) and the government of Dubai will continue to own 82 per cent of Dewa's share capital, the company said on Saturday.

Including investors that participated in the third tranche — eligible Dewa employees — retail investors will represent 9.2 per cent of the total expanded deal. The retail tranche has been increased from 260 million shares to 760 million shares, it said.

Dewa, the first government entity to list on the Dubai Financial Market (DFM), operates as a vertically integrated multi-utility, with business activities including electricity generation, transmission and distribution, water desalination and district cooling.

As of December 31, it had a total electricity generation capacity of 13,417 megawatts and a water capacity of 526 million imperial gallons per day through eight majority-owned and operated plants.

The company reported revenue of Dh23.8bn and assets of Dh169.5bn in 2021. It has projects valued at about Dh86bn that are planned to be commissioned in the next five years to meet the increasing demand for electricity and water in the emirate, it said last year.

The subscription period for the Dewa IPO remains unchanged and will close on April 2 for UAE retail investors and on April 5 for qualified domestic and international institutional investors, the company said.

Dewa is expected to list on the DFM on or around April 12, 2022.

After the IPO, Dewa intends to pay dividends twice each financial year – in April and October. A minimum dividend of Dh6.2bn per annum is expected to be paid over the next five years.

Bundesliga fixtures

Saturday, May 16 (kick-offs UAE time)

Borussia Dortmund v Schalke (4.30pm)

RB Leipzig v Freiburg (4.30pm)

Hoffenheim v Hertha Berlin (4.30pm)

Fortuna Dusseldorf v Paderborn (4.30pm)

Augsburg v Wolfsburg (4.30pm)

Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)

Sunday, May 17

Cologne v Mainz (4.30pm),

Union Berlin v Bayern Munich (7pm)

Monday, May 18

Werder Bremen v Bayer Leverkusen (9.30pm)

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Ain Dubai in numbers

126: The length in metres of the legs supporting the structure

1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch

16 A380 Airbuses: The equivalent weight of the wheel rim.

9,000 tonnes: The amount of steel used to construct the project.

5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place

192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.

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