An investor looks up at screens displaying stock information at the Dubai Financial Market. File/Reuters
Multiply Group, a technology-enabled holding company based in Abu Dhabi, on Friday announced that it will be investing Dhs367 million into the Dubai Electricity and Water Authority’s (DEWA’s) landmark initial public offering as a cornerstone investor.
The Group’s latest investment follows a series of strategic acquisitions, creating a unique technology-enabled ecosystem to pursue growth across five vertical segments: media and communications, utilities, ventures, wellness and beauty, and digital economy.
The past year saw Multiply Group acquire stakes in UAE-based assets with substantial earning potential and international high growth firms, including US vehicle-focused digital media platform Firefly, global visual content firm Getty Images, Rihanna’s direct-to-consumer e-commerce fashion firm Savage X Fenty, PAL Cooling Holding, Emirates Driving Company, and Viola Communications.
Samia Bouazza, CEO and Managing Director at Multiply Group, said, “Our interest in DEWA’s public offering is driven by our confidence in the UAE’s economy. Dewa has successfully cemented its position as one of the region’s leading fully integrated utility companies by capitalising on its strong market fundamentals and state-of-the-art infrastructure.
“The company’s unique positioning, attractive financial profile and clear strategic objectives make it an attractive investment for Multiply Group. Furthermore, as regional capital markets continue to perform favourably, we believe that our investment into DEWA will generate substantial value for our shareholders.” Multiply Group benefits from a solid leverage-free liquidity position, having raised Dhs3.1 billion in a pre-listing private placement 16 times oversubscribed. The company’s strategy is to pursue profitable growth through a diversified portfolio, striking a balance between steady companies that generate recurring income and high-growth businesses.
Alpha Dhabi’s Dhs367 million investment: Alpha Dhabi Holding, an Abu Dhabi-based conglomerate and subsidiary of the International Holding Company (IHC), has made an Dhs367 million investment into DEWA’s initial public offering (IPO) through its subsidiary Alpha Dhabi Partners Holding LLC, as a cornerstone investor.
As part of the transaction, Alpha Dhabi Partners Holding LLC will acquire shares through DEWA’s IPO.
Alpha Dhabi continues to be a key and strategic contributor to the UAE’s economy and diversification efforts and is committed to driving continuous growth for its stakeholders through investments in market leaders that enable the Company to deliver superior value to its shareholders. Investing in DEWA, a world-class and leading integrated utilities provider with significant ESG credentials as a key enabler of Dubai’s energy transition strategy, supports Alpha Dhabi’s long-term investment strategy.
Building on its highly diversified investment portfolio, the cornerstone investment in DEWA follows the significant investments the company has recently made in other market leaders including Aldar Properties and Q Holding. With a strong balance sheet, liquidity position and pipeline of potential investments and transactions, Alpha Dhabi is able to be agile in its continued effective deployment of capital as part of its growth strategy while also seizing on opportunities to be part of flagship listings in the UAE that present significant growth potential.
Hamad Al Ameri, CEO of Alpha Dhabi Holding, said, “DEWA’s landmark IPO is representative of the strides the UAE continues to make to diversify its economy and provides a strong platform for DEWA to build on its growth potential, supported by robust market fundamentals. DEWA’s strong ESG credentials and the high-interest nature of the IPO puts the UAE firmly on the global investment map and we are proud to be a cornerstone investor as part of their IPO.”
Dewa announced on Thursday the price range and start of the subscription period for its initial public offering (IPO or the Offering) on the Dubai Financial Market (DFM).
Saeed Mohammed Al Tayer, Managing Director & Chief Executive Officer of Dewa, said,”Dewa has a fundamental role to play in the growth of Dubai’s economy and is central to the Emirate’s transition to net zero carbon emissions by 2050. This IPO represents an opportunity for investors to participate in a unique growth story that is underpinned by the ambition of Dubai and the United Arab Emirates. Since announcing our intention to float on the Dubai Financial Market last week, we have received strong interest from local and international investors that recognise our determination to shape a green future for Dubai. ‘’
He added, “This interest also reflects the confidence in Dewa, which keeps pace with Dubai’s expanding economy and population by developing a world-class competitive infrastructure to consolidate Dubai’s position as a global city and provide electricity and water services according to the highest global standards.”