Dewa shareholders approve one-time dividend payment of nearly $553 million

Next 12-month dividend yield stands at 6.64% at an IPO price of Dh2.48 per share

Dewa operates as a vertically integrated multi-utility. Photo: Dewa
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The Dubai Electricity and Water Authority on Monday approved the payment of a one-time special dividend of Dh2.03 billion ($552.68 million), with a record date of December 22.

Dewa, the first Dubai entity to go public among the 10 state enterprises the government plans to list on the Dubai Financial Market (DFM), held its second general assembly for the year on Monday.

“Dewa continues its excellence journey and smart and sustainable growth … Dewa is on track to record the best full-year financial performance in its history,” Matar Al Tayer, chairman of Dewa’s board of directors, said in a statement.

The entity reported a 10 per cent jump in third-quarter net profit as revenue rose amid increased power demand in the emirate.

Net profit attributable to the owners of the company for the three-month period to the end of September climbed to Dh3.17 billion. Revenue for the July-September period rose by 15 per cent to Dh8.56 billion.

The company operates as a vertically integrated multi-utility. Its businesses include electricity generation, transmission and distribution, water desalination and district cooling.

For shareholders who invest in Dewa’s shares before the dividend record date of December 22 — with a last entitlement date of December 20 — the next 12-month dividend yield is at 6.64 per cent, at an initial public offering share price of Dh2.48 per share, Dewa said.

“This dividend yield is more attractive than most companies listed on the ADX [Abu Dhabi Securities Exchange], DFM and Tadawul, as well as other global utility companies … we will continue to develop Dewa’s position as a globally leading, sustainable innovative corporation,” said Saeed Al Tayer, managing director and chief executive of Dewa.

Last month, Dewa's subsidiary Emirates Central Cooling Systems Corporation (Empower) raised more than Dh2.6 billion through its IPO, which was 47 times oversubscribed.

The district cooling provider sold two billion shares, equivalent to 20 per cent of its share capital, at the higher end of its offer share price of Dh1.33, giving Empower a market value of Dh13.3 billion at listing.

Updated: December 12, 2022, 3:55 PM