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Emirates central cooling systems company (Empower) has announced the successful completion of the book-building of its initial public offering (IPO), raising AED2.7 billion ($724 million) after pricing its shares at the top of the market range.
A statement from Empower said the sale of 2 billion common shares (equivalent to 20% of Empower’s total issued share capital) followed two successful expansion announcements.
The offering generated significant investor interest, with aggregate demand for the IPO exceeding AED124.6 billion (US$34 billion) at the final offer price, implying an oversubscription level of 47 times the final offer price across all tranches .
The qualified investor segment attracted demand of AED 105 billion globally, implying an oversubscription level of 46 times based on the final issue price. The retail offering generated huge interest from local investors, gathering demand of more than AED 19.6 billion, implying an oversubscription level of 49 times.
The overwhelming investor demand underscores Empower’s compelling investment proposition and reflects strong confidence in Dubai’s long-term growth prospects and critical infrastructure.
This will generate gross proceeds of AED 2.7 billion for major shareholders Dubai Electricity and Water Authority (Dewa) and Dubai Holding’s indirect wholly-owned subsidiary Emirates Power.
After the IPO, Dewa and Emirates Power will continue to hold 56% and 24% of Empower’s existing share capital respectively.
After listing, Empower will become the world’s largest listed district cooling service provider.
Regarding the huge demand, Saeed Mohammed Al Tayer, Chairman of Empower said: “The huge success of the privatization program so far shows that Dubai is well on track to realize the wise leadership’s vision of increasing the total stock volume. The market size is AED 3 trillion. .”
“An important part of the overall financial ecosystem is the process by which companies raise capital, including through listings. This incredible level of investor interest is very encouraging and illustrates that Dubai is a thriving and dynamic international financial institution. center, with real depth and a growing capital demand market. It is also a testament to Empower’s strong fundamentals and our company’s value proposition,” he said.
Chief executive Ahmad Bin Shafar called it a historic moment for Empower and Dubai, marking a major milestone in the emirate’s ambitions to become a leading international financial centre.
“This reflects investor confidence in Empower’s role in supporting the city’s rapid economic growth. Megatrends such as infrastructure expansion, population growth, and a warming climate continue to accelerate the need for more efficient and sustainable cooling to scale, “He says.
“At the core of Empower’s strategy is to support Dubai’s energy transition by providing sustainable cooling solutions, improving energy efficiency and encouraging responsible energy consumption. We look forward to continuing our strategy as a public company,” he added.
Cornerstone investors – Emirates Strategic Investment Fund (via Emirates NBD AM SPC), Shamal Holding and Abu Dhabi Pension Fund (ADPF) – collectively subscribed for 12.6% of the final offering size.
Citigroup Global Markets, Emirates NBD Capital and Merrill Lynch International have been appointed as joint global coordinators, EFG Hermes UAE Limited has been appointed as joint bookrunner and Moelis & Company UK (a division of DIFC) has been appointed as independent financial advisor to Empower.
Emirates NBD Bank is appointed as the primary receiving bank. Abu Dhabi Islamic Bank, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank, MBank and Sharjah Islamic Bank are designated as receiving banks.-TradeArabia News Service
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