Dubai’s Empower IPO raises AED2.6bn amid huge demand

Dubai’s Empower IPO raises AED2.6bn amid huge demand

Dubai / WAM 

Emirates Central Cooling Systems Corporation PJSC (Empower), on Wednesday announced that, following the successful completion of the book-build and public subscription process for its initial public offering (IPO), it has set the final offer price for its IPO at AED1.33 per share, at the top of the price range.

Following two successful upsize announcements, a total of 2,000,000,000 ordinary shares (offer shares), equivalent to 20.0 percent of Empower’s total issued share capital, were offered.

This will result in approximately AED2.7 billion ($724 million) of gross proceeds for Dubai Electricity and Water Authority PJSC (Dewa) and Emirates Power Investment LLC (Emirates Power), an indirectly wholly owned subsidiary of Dubai Holding LLC (Dubai Holding), (together the “selling shareholders”) upon settlement. Following the completion of the Empower IPO, Dewa and Emirates Power will continue to own 56.0 percent and 24.0 percent of Empower’s existing share capital, respectively.

Upon listing, Empower will become the world’s largest district cooling services provider on a stock exchange.

The offering saw significant investor interest, with total gross demand for the IPO over AED124.6 billion at the final offer price, implying an oversubscription level of c.47x times for all tranches combined at the final offer price. The