Dubai Electricity & Water Authority (DEWA) has hired Citigroup and HSBC in top roles for its upcoming initial public offering (IPO) which could raise up to $2 billion, sources said.
The two banks will join Emirates NBD, which was earlier chosen by the company to play a leading role, they said.
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One of the sources told Reuters DEWA’s IPO could be as much as $2 billion, depending on the float the government decides for the deal, making it the biggest deal in the Gulf region since Saudi Aramco’s record $29.4 billion IPO in 2019.
More banks will be added as bookrunners, the sources said.
Bloomberg reported JPMorgan, Goldman Sachs, and Credit Suisse have been selected to play the role of bookrunners, citing unnamed sources.
Reuters had reported last month investment bank Moelis and Dubai’s Emirates NBD were hired to advise on DEWA’s, IPO, citing sources familiar with the matter.
The Dubai government has announced plans for a stock market flotation of the utility, among 10 state-backed companies to be listed as part of plans to boost activity on the local bourse.
DEWA and the Dubai Media Office did not immediately respond to a Reuters request for comment. Citigroup declined to comment, while HSBC did not immediately respond to a Reuters request for comment.
The listing plans are aimed at making Dubai a more competitive market against bigger bourses in the region, such as those in Saudi Arabia and neighboring Abu Dhabi, that are seeing larger listings and strong liquidity.
A spate of de-listings and an absence of big initial public offerings have put Dubai’s stock market under pressure, raising questions over the future of one of the Gulf’s major exchanges, launched two decades ago.
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