Utico, the Middle East’s leading full service utility and the only private water and power company in the UAE, said it intends to list the company in 2021.
In a statement, Utico said its advisors were in negotiations to list the company through an AED 3 billion valuation IPO in Dubai later this year.
“It is a co-incidence 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 to be listed in the local securities exchanges, and our own intent to list in the UAE is pleasantly in line with the vision of the country’s leadership, said Mr. Richard Menezes, CEO of Utico.
Utico being a large investor and service provider in the UAE 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, the statement said, adding that Utico’s ESG metrics is one of the highest in the world in many aspects.
Utico intends to list 20-30% of the company, Mr. Menezes said, and this will be of great value to the public investors offering forward multiples in the range of about 11. Investors could expect a stable incremental dividend increase by 8 to 10% thereafter, which with current outlook can beat forward market metrics, he said.
The shareholders of Utico will finalize the dilution after due consultation with advisors and market regulators, he added.
Utico said that it being the lowest cost reliable quality producer serving 5 of the 6 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 currently serves a population of about 200,000 and holds a market share of 20% in the areas it serves.
Utico 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. Utico hopes to improve its value proposition globally contributing to the drinking water and water treatment solutions worldwide. Utico is also the Largest Private Full service Utility provider in the region and has a current presence in 7 countries in the Middle East.