UAE Business: Deloitte successfully advises Empower on its IPO on DFM – Gulf Digital News

UAE Business: Deloitte successfully advises Empower on its IPO on DFM – Gulf Digital News

Deloitte has successfully advised Emirates Central Cooling Systems Corporation (Empower) on its initial public offering (IPO) on the Dubai Financial Market (DFM)which attracted strong demand.

With the initial offer tranche being fully subscribed in the first few hours of the offering, the company increased the offering from 10% to 15%, with AED2 billion ($543 million) likely to be raised as a result. Following the IPO, Empower expects to pay AED850 million ($231 million) in annual dividends, implying a 6.5% yield.

The IPO represents a key milestone not only for the company, but also for the Emirate of Dubai, with its goal to list a number of state-owned entities as part of its strategy to monetise on some of its assets and attract liquidity to the Dubai Financial Market.

Private due diligence

Deloitte was responsible for delivering some customary private due diligence services to the company and the local banks. As part of delivering the work, Deloitte worked closely with a large consortium of advisors, led by Moelis & Co and including Emirates NBD Capital, Merrill Lynch International and EFG-Hermes.

“The successful completion of this IPO adds to a series of strong market credentials which Deloitte’s Equity Capital Markets Team has developed over the years, including