Dubai Electricity and Water Authority (DEWA) more than doubled the size of its initial public offering (IPO) on Tuesday, meaning it could raise as much as $5.7 billion in the region’s biggest IPO since Saudi Aramco’s record share sale.

The state utility firm said it got approval from the stock market regulator to increase the size of its deal from a float of 6.5% to 17%, equivalent to 8.5 billion shares.

DEWA said it increased the size of the tranche reserved for institutional investors from 5.9% to up to 16.4%, while the tranches for retail investors and employees will remain the same.

Of the total 17%, about 7% will be reserved for new strategic investors whose shares will be subject to a lock up period between 180 and 365 days. The company did not disclose the names of those investors.

Last week, the company set an indicative price range for its IPO, between 2.25 dirhams ($0.6126) and 2.48 dirhams.

The listing is aimed at helping the Dubai stock market compete more effectively with bigger exchanges in the region, such as those in Saudi Arabia and neighbouring Abu Dhabi.

For Dubai, DEWA's offering exceeds DP World's almost $5 billion IPO in 2007.

Saudi Arabia has seen a flurry of IPOs since Aramco's record $29.4 billion listing in 2019, as it encourages family-owned businesses to list, while its main sovereign wealth fund has monetised assets through share sales.