DUBAI, UAE, 24 October 2022: Emirates Central Cooling Systems Corporation PJSC (Empower), highlighting that it has a targeted market share of approximately 80% of the total District Cooling connected capacity by the end of 2022, announced its intention to proceed with an initial public offering (IPO, Offering) and to list a portion of its ordinary shares for trading on the Dubai Financial Market (DFM).

Making the announcement through a Press release, Empower said it would make available one billion shares, each with a nominal value of AED 0.10 (ten fils) in the Offering, representing 10% of Empower’s total existing share capital. All shares to be offered, it said, represent the sale of existing shares held in aggregate by DEWA and Emirates Power (an indirectly wholly owned subsidiary of Dubai Holding), with DEWA selling seven per cent and Emirates Power selling three per cent in the Offering.

The Selling Shareholders reserve the right to amend the size of the Offering (in whole and/or individual tranches) at any time before the end of the subscription period of the Second Tranche, subject to applicable laws and approval by SCA, Empower said.

The Offering would be made available to individual and other investors, as part of the UAE Retail Offering, as well as to professional investors outside the United States of America, including the UAE, as part of the Qualified Investors Offering, Empower said.

According to Empower, the subscription period will open on October 31, 2022, and is expected to close on November 7, 2022 for UAE Retail Investors, and on November 8, 2022 for Qualified Investors. The Internal Sharia Supervision Committee of Emirates NBD Bank PJSC has issued a pronouncement confirming that, in its view, the Offering is compliant with Shariah principles, Empower said. Admission of the Shares to trading on the DFM is expected in November 2022, Empower added.

According to Empower, the existing share capital of the Company consists of 10,000,000,000 ordinary shares, each with a nominal value of AED 0.10, which are fully paid, issued and outstanding. Following the Offering, the Company intends to adopt a semi-annual dividend distribution policy and to pay dividends twice each fiscal year after the Offering in April and October of each year, Empower said.

The Group expects to pay a minimum dividend amount of AED 850 million per annum, in the first two fiscal years following the Offering (April 2023 to October 2024), Empower said. The Company expects to distribute its first dividend payment of a minimum of AED 425 million after the Offering, for the second half of 2022, by April 2023, Empower said. After the October 2024 distribution, the Company expects to pay a sustainable dividend in line with the growth of the business, Empower added.

This dividend policy is designed to reflect the Company’s expectation of strong cash flows and expected long-term earnings potential, while allowing the Company to retain sufficient capital to fund ongoing operating requirements and continued investment for long-term growth, Empower said.

This dividend policy is subject to consideration of the Board of Directors of the cash management requirements of the Company’s business for operating expenses, financing expense and anticipated capital expenditures, Empower said. In addition, the Company expects that the Board of Directors will also consider market conditions, the then current operating environment in the Company’s markets, and the Board of Directors’ outlook for the Company’s business, Empower said.

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, and Deputy Prime Minister and Minister of Finance of the UAE, on the occasion of Empower announcing its intention to float on the Dubai Financial Market, said: “Today’s announcement, the fourth in a series of planned listings of Dubai’s government and semi-government companies, marks another historic milestone in the implementation of the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make the emirate a leading global capital market hub. With its strong fundamentals and investment value proposition, Empower’s IPO will further consolidate Dubai’s strategy to deepen its capital markets and accelerate new listings in vital sectors.

The success of the initial phase of Dubai’s IPO strategy reflects the deep confidence of the global investment community in the emirate’s strategy for sustainable development, its track record of economic resilience, its long-term growth prospects and its ability to script global success stories. The world’s largest district cooling services provider, Empower is core to achieving Dubai’s target of producing 100% of its energy from clean sources by 2050. It is also a key player in Dubai’s efforts to be a leader in addressing the global impact of climate change and its goal of becoming one of the world’s leading smart cities.”  

His Excellency Saeed Mohammed Ahmad Al Tayer, Chairman of Empower, said: “Thanks to the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and the follow up from His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance, Dubai is moving steadily to become a leading global economic hub.

Dubai aims to increase the total volume of its stock markets to AED 3 trillion. Empower’s superior technology and successful track record in acquiring iconic projects in Dubai reflect the key role DEWA and its subsidiaries are playing in Dubai’s green energy transition process. Empower’s ability to continuously leverage its scale and knowledge qualifies the company to be well-positioned for growth in markets where district cooling plays an important societal role.

At the heart of Empower’s strategy is supporting Dubai’s energy transition; by providing access to sustainable cooling solutions and increased energy efficiency, better water efficiency, and encouraging responsible energy consumption. The Company’s long-term principles are guided by ensuring inclusion, empowerment, diversity and gender equality. The Group is also an active player within its communities and its approach is to align its strategies and operations with the most material UN SDGs. With a fundamentally attractive and fast-growing market, driven by strong macro fundamentals and favourable government policy, we are excited about the future and look forward to serving all our customers and stakeholders.”

His Excellency Ahmad Bin Shafar, Chief Executive Officer of Empower, added: “With a targeted market share of 80% in the Emirate of Dubai by the end of 2022, Empower supports as well as benefits from the city’s fast-paced economic growth. This includes mega-trends such as expansion in infrastructure, a rising population and hot climates, which continue to accelerate the need for more efficient and sustainable cooling at scale. As a leading player in the implementation of district cooling technology as well as the deployment of a more sustainable cooling method in Dubai, Empower provides investors with a unique opportunity to invest in a Company that operates in a market that has solid macroeconomic fundamentals for district cooling, making it a growth engine for Empower.”