Empower announces IPO's price range


Emirates Central Cooling Systems Corporation (Empower) has announced the price range and start of the subscription period for its Initial Public Offering on the Dubai Financial Market.

The price range for the Offering has been set between AED 1.31 and AED 1.33 per share, a company statement said on Monday.

The total Offering size is expected to be between AED 1.31 billion ($357 million) to AED 1.33 billion ($362 million), implying a market capitalisation at a listing of between AED 13.1 billion ($3,567 million) and AED 13.3 billion ($3,622 million).

"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," said Ahmad bin Shafar, Chief Executive Officer of Empower.

"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, he added.

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 per cent to 6.5 per cent range.

The statement added that 10 per cent 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 Securities and Commodities Authority (SCA).

All the shares are existing shares, with DEWA and Emirates Power selling 7 per cent and 3 per cent of the total issued share capital, respectively. The Company will not receive any proceeds from the Offering.

Following the Offering, 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 per cent and 27 per cent, respectively.

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