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Utico announces AED 3 billion primary listing in 2021

Company, which describes itself as the largest full-service utility in the Middle East, will float its shares in Dubai

| | Feb 2, 2021 | 6:55 am
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DUBAI, UAE, 2 February 2021: Utico said it intends to list the company in 2021. Making the announcement through a Press release, the company, which describes itself as the Middle East’s largest full-service utility and the only private water and power company in the UAE, said that its advisors were in negotiations to list the company through an AED 3 billion valuation IPO in Dubai later this year.

“It is a coincidence that the government’s decree that all private joint stock companies and international private companies, which derive greater than 50% of their profits from the UAE, are to be listed in the local securities exchanges, and that our own intent to list in the UAE is pleasantly in line with the vision of the country’s leadership, said Richard Menezes, CEO, Utico.

Utico said that by virtue of being a large investor and service provider in the UAE, it has a firm footing in the society, and it now intends to build on this by improving its offerings and bringing more products and services to the consumers and customers, in line with its full-spectrum circular economy sustainability business model. It added that its ESG metrics is one of the highest in the world in many aspects.

Menezes said that Utico intends to list 20-30% of the company, and that this will be of great value to the public investors offering forward multiples in the range of about 11. Investors, he said, could expect a stable incremental dividend increase by 8-10% thereafter, which with current outlook can beat forward market metrics. The shareholders of Utico, he said, will finalise the dilution after due consultation with advisors and market regulators.

Utico said that it being the lowest-cost reliable quality producer serving five of the six emirates in the UAE and having lately been 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, makes it a desirable stock to own. Utico said it currently serves a population of about 200,000 and holds a market share of 20% in the areas it serves.

Utico said it has been a committed company to the UAE and the countries it serves, building a sustainable business model with large expertise in the water and utilities services with its unique standing and offerings.  It added that it hopes to improve its value proposition, globally, contributing to the drinking water and water treatment solutions, worldwide.

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