Emirates Central Cooling Systems Corporation (Empower) has announced the successful completion of the bookbuilding for its initial public offering (IPO), raising AED2.7 billion ($724 million) after pricing its shares at the top of a marketed range. 

 

Following two successful upsize announcements, a total of 2 billion ordinary shares (equivalent to 20% of Empower’s total issued share capital) were offered, said a statement from Empower. 

 

This will result in AED2.7 billion of gross proceeds for the main shareholders - Dubai Electricity and Water Authority (Dewa) and Emirates Power Investment (Emirates Power), an indirectly wholly owned subsidiary of Dubai Holding upon settlement. 

 

Following completion of the IPO, Dewa and Emirates Power will continue to own 56% and 24% of Empower’s existing share capital, respectively, it stated.

 

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

 

On the overwhelming demand, Saeed Mohammed Al Tayer, Chairman of Empower, said: "The huge success of the privatisation programme so far shows that Dubai is well on its way to achieve the vision of the wise leadership to increase the total volume of its stock markets to AED3 trillion."

 

"A vital part of the entire financial ecosystem is the process by which companies raise capital, including by going public. This incredible investor interest is deeply encouraging and illustrates that Dubai is a thriving dynamic international financial centre with real depth and growing demand to its capital markets. It also demonstrates Empower’s strong fundamentals and our company’s value proposition," he stated. 

 

CEO Ahmad Bin Shafar, dubbing it as a historic moment for both Empower and Dubai, marks an important milestone in the emirate’s ambition to be a leading international financial centre. 

 

"It reflects the deep confidence of investors in the role that Empower plays in supporting the city’s fast-paced economic growth. Mega-trends such as expansion in infrastructure, a rising population and warmer climates continue to accelerate the need for more efficient and sustainable cooling at scale," he stated. 

 

"At the heart of Empower’s strategy is supporting Dubai’s energy transition, by providing access to sustainable cooling solutions, increased energy efficiency and encouraging responsible energy consumption. We look forward to continuing to deliver on our strategy as a listed business," he added.