A private utility company in the UAE plans to make a listing on Dubai Financial Market later this year, floating between 20-30 per cent of its shares.
Dubai , Dubai
03 February 2021, 12:00 AM
28 February 2021, 12:00 AM
Utico, the UAE’s only private water and power company, said that it intends to list the company on the Dubai Financial Market in 2021. Utico, has multiple projects in the country and elsewhere in the Gulf, is aiming for a Dh3 billion valuation.
Utico said its advisors were currently in negotiations to list the company through a Dhs3bn valuation IPO in the emirate later this year.
The company is projecting forward multiples of about 11, and investors could expect a stable incremental dividend increase by 8-10 per cent thereafter, according to the promoter.
Richard Menezes, CEO of Utico, “It is a co-incidence the government’s decree that all private joint stock companies and international private companies which derive greater than 50 per cent of their profits from the UAE to be listed in the local securities exchanges."
Menezes added that shareholders of Utico will finalize the dilution after due consultation with advisors and market regulators.
Utico, services 5 emirates within the UAE, and was awarded Dubai’s largest Hassyan IWP desalination project for 35 years supply, as well as winning a water supply project in Oman with the lowest IWP tariff in the sultanate.
It currently serves a population of about 200,000 and holds a market share of 20 per cent in the areas it serves.