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Dubai’s Empower increases IPO size by 50% on strong demand

Empower delivered district cooling services to 1,522 buildings in the emirate last year

Shareholders in Dubai’s Emirates Central Cooling Systems Corporation (Empower) have increased the size of the stake being offered in an initial public offering (IPO) to 15 percent from 10 percent, citing strong demand for the shares.

Empower said in a statement its two shareholders Dubai Electricity and Water Authority and Emirates Power Investment had exercised their right to increase the number of ordinary shares being offered in the listing to 1.5 billion from one billion.

“The decision to increase the offering size was determined after strong investor demand and oversubscription,” Empower said.

Empower is set to raise up to almost AED2 billion ($544.53 million) in the public share-sale based on an indicative price range given on Monday. The final price will be set on November 9.

Last month, Ahmad Bin Shafar, CEO of Empower, said at a press conference that the company will look to expand within the UAE and the GCC.

Empower is targeting to hold an 80 percent market share of the total connected capacity in Dubai by the end of 2022.

The firm plans to pay a minimum of AED850 million ($231.4 million) in dividends in each of the first two fiscal years after the IPO.