Dubai utility DEWA rises 20% above IPO price

div classBodysc17zpet90 cdBBJodivpBy Hadeel Al Sayeghp

pDUBAI Reuters Shares in Dubai Electricity and Water Authority DEWA surged about 20 on their market debut on Tuesday after its 6.1 billion initial public offering IPO, the regions biggest since Saudi Aramco.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe utilitys shares rose to 2.98 dirhams 0.8114 in early trade, up from the IPO price of 2.48 dirhams per share. p

pMiddle East and North African investment bank EFG Hermes said in a note to clients that it expects DEWA to be eligible for fast entry into FTSEs emerging markets index.p

pIt estimates that DEWA can expect minimum inflows of 53 million from FTSE passive trackers and any increase in price would lead directly to more inflows. p

pAs well as raising money for Dubai, the IPO aims to help the emirates exchange to compete more effectively with bigger rivals in the region, such as those in Saudi Arabia and Abu Dhabi. p

pDEWA said in its prospectus that the 18 share sale by the Dubai government was aimed at boosting trading liquidity in the stock market and raising the companys profile with international investors.p

pThe public share sale is the biggest for Dubai and the largest across the region since Saudi Aramcos world record 29.4 billion IPO.p

p1 3.6726 UAE dirhamp

p Reporting by Hadeel Al SayeghEditing by David Goodmanp

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