Empower announces offer price range for IPO

DUBAI, UAE, 31 October 2022: Emirates Central Cooling Systems Corporation PJSC (Empower) announced through a Press release the price range and start of the subscription period for its initial public offering (IPO) on the Dubai Financial Market (DFM).  

H.E. Ahmad Bin Shafar

H.E. Ahmad Bin Shafar, CEO, Empower, said: “Empower has a proud history of pioneering sustainable cooling technology in the UAE and has played an integral role in supporting the growth of Dubai.

As the largest district cooling provider in the world, Empower is inherently linked towards Dubai’s wider energy transition goals, including the Dubai Integrated Energy 2030 Strategy. Backed by strong Government policies as well as our leading district cooling services, we are confident in scaling practical and sustainable solutions that will benefit our wide customer base.

Since announcing our intention to float on the DFM, we are extremely pleased to have received strong interest from investors. Amid Dubai’s expansion plans, a robust growth in residential real estate supply and a booming hotel capacity, we believe Empower presents a unique and attractive investment proposition for all investors.”  

According to Empower, the price range for the Offering has been set at between AED 1.31 and AED 1.33 per share. The total Offering size is expected to be between AED 1,310 million (USD 357 million) to AED 1,330 million (USD 362 million), implying a market capitalisation at listing of between AED 13,100 million (USD 3,567 million) and AED 13,300 million (USD 3,622 million), Empower said.

Based on the dividend policy approved by the Board of Directors, which is expected to be a minimum dividend amount of AED 850 million paid in 2023, or AED 0.085 per share, the offer price range implies a dividend yield within the 6.4% and 6.5% range, Empower said.

According to Empower, 10% of the total issued share capital of Empower – equivalent to a total of 1,000,000,000 shares – are being made available via the Offering, with the Selling Shareholders reserving the right to amend the size of the Offering at any time prior to the end of the subscription period at their sole discretion, subject to applicable laws and the approval of the SCA.

All of the Shares are existing shares, with DEWA and Emirates Power selling seven per cent and three per cent of the total issued share capital, respectively, Empower said. The Company will not receive any proceeds from the Offering, Empower said. Following the Offering, Empower said, and subject to the size of the Offering not being increased, the Selling Shareholders – DEWA and Emirates Power – will continue to hold a stake of 63% and 27%, respectively.