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Utico wants to join the Dubai stock marketMENA

Utico wants to join the Dubai stock market

Utico, a utility company, has announced that it plans to go public this year via an IPO. It will sell 20-30% of its shares at a valuation of $810m.

The company is enticing investors with a Price-to-Earnings Ratio of 11x and incremental dividends of 8-10%.

Utico plans to enhance its offering and introduce new products and services aligned with its sustainability-focused business model. But that doesn’t mean that what it currently offers is subpar – Utico commands more than 20% market share across its existing product categories. Also, it was recently awarded Dubai’s largest desalination project, which is a 35 year-long engagement.

why it matters
The UAE has issued a decree mandating all locally-based companies that generate more than 50% of their profits from within the country to list on local securities exchanges. Utico is just one player in this local lineup as we await more announcements throughout 2021.