Dubai's DEWA shares soar in Gulf's biggest IPO since 2019

Shares in the Dubai Electricity and Water Authority rose nearly 16 percent on Tuesday in the Gulf region's biggest initial public offering since Saudi oil giant Aramco in 2019.

DEWA shares soared 19 percent in the first minutes of trading before closing up 15.72 percent at 2.87 dirhams ($0.78), as the Dubai stock exchange was down 0.5 percent.

The Dubai-owned utility last week said it had raised 22.3 billion dirhams ($6.1 billion) in the Gulf's largest IPO since Aramco's world-record flotation.

Some nine billion shares, an 18 percent stake, were listed, with the initial price set at 2.48 dirhams ($0.68).

The deal, in which more than 65,000 institutional and retail investors participated, values the company at 124 billion dirhams ($33.9 billion), the company said.

The record for the largest public listing in the Gulf, and in the world, is held by Aramco, which raised $29.4 billion by listing a 1.7 percent stake on the Saudi Stock Exchange in December 2019.

The emirate of Dubai, which lacks the large oil reserves boasted by some of its neighbours, has diversified its economy by focusing on finance, tourism and trade.

But it is facing increased competition in the region, notably from Saudi Arabia, which is also seeking to reduce its dependence on oil and gas.