Shares in the Dubai Electricity and Water Authority rose 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 paring back to 16 percent at 11 am (0700 GMT). The Dubai stock exchange was down 0.5 percent after the first hour of trade.
The state-owned utility last week said it had raised AED22.3 billion ($6.1 billion) in the Gulf region’s largest IPO since Aramco’s world-record flotation.
Some 9 billion shares, an 18 percent stake, were listed, with the initial price set at AED2.48 ($0.68).
The deal, in which more than 65,000 institutional and retail investors participated, values the company at AED124 billion ($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 Riyadh Stock Exchange in December 2019.
The emirate of Dubai, which lacks the large oil reserves boasted by some of its neighbors, 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.