UAE-In-Focus — Dubai’s Union Coop’s IPO drops on launch day; Dubai sees 6.3% increase in energy demand in H1

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DUBAI: Union Coop’s Dubai debut traded 18 percent below its indicated price, valuing the company at 6 billion dirhams ($1.64 billion)

Shares of the supermarket operator were set at 3.9 dirhams as an indicative price, according to Bloomberg, but fell 13 percent to 3.41 dirhams.

Despite Middle East share sales being among the market’s few positives, risky assets are declining, and equity benchmarks are down from their May peaks.

Tecom Group slumped 17 percent this month, becoming the first listing in over four years to be at a loss, Bloomberg added.

When Dubai Electricity & Water Authority launched in April, it soared 20 percent, but has since lost most of its gains, Bloomberg said.

In November, Dubai said it would sell shares in 10 companies, and private businesses have been encouraged to do the same, the article said.

UAE cooperative societies were allowed to list shares locally in February, it added.

The city is also planning to privatize its Salik road toll collection system later this year, Bloomberg concluded.

Dubai records a 6.3 percent increase in energy demand in H1.

Energy demand in Dubai increased by 6.3 percent during the first half of 2022 reaching 23,096 gigawatt hours compared to 21,729 GWh in the first half of 2021, the CEO of the Dubai Electricity and Water Authority said in a statement.

DEWA’s Managing Director and CEO Saeed Mohammed Al-Tayer added that the increase in energy demand reflects the economic recovery.

According to the statement, DEWA’s capacity has reached 14,117 megawatts of electricity and 490 million imperial gallons of desalinated water per day.

Over 3.5 million people live in Dubai, and DEWA provides electricity and water services to them. In 2040, these numbers are expected to reach 5.8 million and 7.8 million, respectively, the statement concluded.