DUBAI, UAE, 9 November 2022: Emirates Central Cooling Systems Corporation PJSC (Empower) said that following the successful completion of the bookbuild and public subscription process for its initial public offering (IPO), it has set the final offer price for its IPO at AED 1.33 per share, at the top of the price range.
According to Empower, following two successful upsize announcements, a total of 2,000,000,000 ordinary shares (Offer Shares), equivalent to 20% of Empower’s total issued share capital, were offered. This will result in approximately AED 2.7 billion (USD 724 million) of gross proceeds for Dubai Electricity and Water Authority PJSC (DEWA) and Emirates Power Investment LLC (Emirates Power), an indirectly wholly owned subsidiary of Dubai Holding LLC (Dubai Holding), together the “Selling Shareholders, upon settlement. Following completion of the Empower IPO, DEWA and Emirates Power will continue to own 56% and 24% of Empower’s existing share capital, respectively, Empower said. Upon listing, Empower said, it will become the world’s largest District Cooling services provider listed on a stock exchange.
According to Empower, the Offering saw significant investor interest, with total gross demand for the IPO in excess of AED 124.6 billion at the final offer price, implying an oversubscription level of c.47x times for all tranches combined at the final offer price. The Qualified Investor tranche attracted demand across the globe of c.AED 105 billion, implying an oversubscription level of 46x at the final offer price, Empower said. The retail offering saw tremendous appetite from local investors with demand collected in excess of AED 19.6 billion, implying oversubscription levels of 49x. The overwhelming investor demand underlines Empower’s compelling investment proposition and reflects strong confidence in Dubai’s long-term growth prospects and critical infrastructure, the company said.
H.E. Saeed Mohammed Al Tayer, Chairman, 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 AED 3 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.”
H.E. Ahmad Bin Shafar, CEO, Empower, added: “This is a historic moment for both Empower and Dubai, and 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. 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.”
According to Empower, the UAE Strategic Investment Fund (through Emirates NBD AM SPC), Shamal Holding and the Abu Dhabi Pension Fund (ADPF), together, the Cornerstone Investors, collectively subscribed for 12.6% of the final Offer Size. Subject to certain customary exceptions, the Cornerstone Investors’ shares are subject to a 180-day lock-up arrangement, from listing day, Empower said.
Furthermore, as part of the offering to professional investors and other investors in a number of countries, including in the UAE, outside the United States of America in reliance on Regulation S (the “Qualified Investor Offering”), and in accordance with both the Companies Law and the Dubai Law, five per cent of the Offering was reserved for offer to the Emirates Investment Authority (EIA), and five per cent of the Offering was reserved for offer to the Pensions and Social Security Fund of Local Military Personnel (also known as the “Fund”).
Empower said it expects to commence trading on the DFM on November 15, 2022, under the symbol “EMPOWER” and ISIN AEE01134E227. At listing, the Company said, it will have a market capitalisation of AED 13.3 billion (USD 3.6 billion).
According to Empower, investors who participated in the UAE Retail Offering will be notified of their allocation of shares via SMS no later than November 14, 2022. According to Empower, Citigroup Global Markets Limited, Emirates NBD Capital PSC and Merrill Lynch International were appointed as Joint Global Coordinators and EFG Hermes UAE Limited, acting jointly with EFG Hermes UAE LLC, had been appointed as a joint bookrunner — together with the Joint Global Coordinators, the Joint Bookrunners. Moelis & Company UK LLP DIFC Branch had been appointed as the Independent Financial Advisor to Empower, the company said.
According to Empower, Emirates NBD Bank PJSC was appointed as the Lead Receiving Bank. Empower said that Abu Dhabi Islamic Bank PJSC, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank, MBank and Sharjah Islamic Bank were appointed as Receiving Banks.