Dubai’s main power and water company (DEWA) expects to raise up to $2.2 billion in an initial public offering, which would be the largest listing in the country since DP World’s IPO in 2007, Bloomberg writes.

The Dubai Electricity and Water Authority plans to sell 6.5 percent of the shares, or 3.25 billion shares, at prices ranging from 2.25 to 2.48 dirhams apiece, giving the company a valuation of $33.8 billion.

The listing, which promises to make DEWA the largest company on the Emirates bourse, marks the first step in Dubai’s ambitious plan to revitalize its weakened capital market.

The deal has attracted 6 key investors, including Abu Dhabi-based wealth funds Emirates Investment Authority and ADQ, who have agreed to subscribe for up to 4.7 billion dirhams ($1.3 billion) worth of shares at the offer price.

DEWA’s decision to go public reflects its desire to capitalize on strong investor interest in new equity offerings in the energy-rich Gulf region, even as global equity markets around the world are shaken by Russia’s special operation in Ukraine, rising inflation and hawkish central bank policies. However, high oil prices are favorable for the region, allowing IPOs there while other issuers are stepping aside.

Akber Khan, a senior director at Doha-based and IPO-thinking Al Rayan Investment, said that “The volatility we are seeing exists in the stock market outside our region. This is a boom time for our region.” Khan added that he believes energy prices will remain high for several years.

To boost trading volumes and catch up with rivals from outside Abu Dhabi and Riyadh, Dubai has drawn up a plan to float 10 state-owned companies, including DEWA, in the hope that this will encourage other private and family-owned companies to go public.

Dubai, which relies heavily on tourism and real estate, last IPOed in 2017 for $95 million. Meanwhile, its neighbor Abu Dhabi broke a four-year listing hiatus with 3 debuts in 2021, the largest of which – Adnoc Drilling – attracted orders worth more than $34 billion.

DEWA said it will aim to pay an annual dividend of AED 6.2 billion ($1.69 billion) over the next 5 years. At the top end of the IPO price, their dividend yield will be around 5%.

The company will accept orders from institutional investors until April 5 and plans to set the share price a day later. Trading is expected to begin on April 12.