Emirates Central Cooling Systems Corporation PJSC (“Empower” or the “Company”) today announces that, following the successful completion of the bookbuild and public subscription process for its initial public offering (“IPO” or the “Offering”), it has set the final offer price for its IPO at AED 1.33 per share, at the top of the price range.
Following two successful upsize announcements, a total of 2,000,000,000 ordinary shares (“Offer Shares”), equivalent to 20.0% of Empower’s total issued share capital, were offered. This will result in approximately AED 2.7 bn (USD 724mn) 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 56.0% and 24.0% of Empower’s existing share capital, respectively.
Upon listing, Empower will become the world’s largest district cooling services provider listed on a stock exchange..(1)
The Offering saw significant investor interest with total gross demand for the IPO in excess of AED 124.6bn 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 105.0bn implying an oversubscription level of 46x at the final offer price. The retail offering saw tremendous appetite from local investors with demand collected in excess of AED 19.6bn 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.
His Excellency 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 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.”
His Excellency Ahmad Bin Shafar, Chief Executive Officer of 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.”
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. 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 percent of the Offering was reserved for offer to the Emirates Investment Authority (the “EIA”), and five percent of the Offering was reserved for offer to the Pensions and Social Security Fund of Local Military Personnel (the “Fund”).
Empower is expected to commence trading on the DFM on 15 November 2022, under the symbol “EMPOWER” and ISIN AEE01134E227. At listing, the Company will have a market capitalisation of AED 13.3bn (USD 3.6bn).
Investors who participated in the UAE Retail Offering will be notified of their allocation of shares via SMS no later than 14 November 2022.
Citigroup Global Markets Limited, Emirates NBD Capital PSC, and Merrill Lynch International were appointed as joint global coordinators (the “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.
Emirates NBD Bank PJSC was appointed as the Lead Receiving Bank. 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.
ABOUT EMPOWER
Emirates Central Cooling Systems Corporation PJSC, (“Empower”) was established on 23 November 2003, as a corporate entity pursuant to Ruler of Dubai Law No. (10) of 2003 and commenced commercial operations on 15 February 2004. On 14 October 2022, pursuant to Dubai Law No. (22) of 2022 (which repealed Law No. 10 and Law No. 3) and any other legislation to the extent that it contradicts the provisions of Dubai Law No. (22) of 2022 (“Law No. 22”) the Company was established in its current form, as a public joint stock company to succeed Emirates Central Cooling Systems Corporation. Empower is a district cooling services (“DCS”) provider with the largest market share in Dubai based on its connected capacity. Its principal activities focus on the provision of district cooling services and the management, operation and maintenance of central cooling plants and related distribution networks, as well as the production and selling of pre-insulated pipes and fittings. Empower’s vision is to be the world’s leading DCS provider by promoting sustainable and optimised use of energy resources to deliver reliable, cost-effective, and environmentally friendly world-class DCS to achieve customer satisfaction, thereby creating long-term shareholder value.
MEDIA ENQUIRIES
EMPOWER
Samer Khoudeir, Chief Sales and Marketing Officer
FTI Consulting (as Financial Communications Advisor)
Ajith Henry, Senior Director - Head of Financial Services and Capital Markets
INVESTOR RELATIONS ENQUIRIES
EMPOWER
INDEPENDENT FINANCIAL ADVISOR
Moelis & Company UK LLP DIFC Branch
JOINT GLOBAL COORDINATORS and JOINT BOOKRUNNERS
Citigroup Global Markets Limited
Emirates NBD Capital PSC
Merrill Lynch International
JOINT BOOKRUNNER
EFG Hermes UAE Limited (acting jointly with EFG Hermes UAE LLC)
LEAD RECEIVING BANK
Emirates NBD Bank PJSC
Dedicated IPO Call Center number 800 IPOS (800 4767)
RECEIVING BANKS
Abu Dhabi Islamic Bank PJSC
Ajman Bank
Commercial Bank of Dubai
Dubai Islamic Bank
Emirates Islamic Bank
First Abu Dhabi Bank
Mashreq Bank
MBank
Sharjah Islamic Bank
